Tuesday, November 9 is a moderately busy day in the markets, with several fundamental reports to offer.
First off, Japan published its eco watchers surveys for October, which saw an improved outlook compared to last month.
In Europe, there was some mixed data on the trade balance in Germany and France for the month of September. But, more importantly, the ZEW economic sentiment index for November is out. There are noticeable improvements in the eurozone and Germany as a whole, though the current conditions in the latter were a little disappointing.
In the United States, the flood of speeches by members of the Federal Reserve will continue today. Other notable data from the US is the latest PPI (monthly) reading for October.
The plenum of the Chinese Communist Party continues today and we still await news on President Xi Jinping’s status and position.
Furthermore, risk appetite continues to be the dominant sentiment among market participants, on account of the Federal Reserve (and other notable central banks) reassuring everyone that it is too early for interest rate hikes.
One asset class that risk has been especially favorable for is cryptocurrency. Bitcoin, in particular, has risen to a new all-time maximum of $68,493, while Ethereum has reached $4,800.
Stock indices, normally boosted by stimulus talk, are a bit mixed today due to the upcoming release of the latest PPI report in the United States. The Nasdaq 100 is faring better than the rest due to its tech focus.
Meanwhile, the coronavirus pandemic continues to rage around the globe, with worrying tendencies seen in Europe and the United States, particularly in countries and states with low vaccination rates. The arrival of the colder months and the typical flu season might make matters worse, like it did last winter.
On a brighter note, Regeneron became the third company to announce its Covid-19 antiviral drug has successfully passed the clinical trial. The World Health Organization still encourages people to get vaccinated, but the prospect of supplying hospitals with medication that is actually effective at treating severe Covid-19 should also help ameliorate the effects of the pandemic.
