The coronavirus pandemic has now affected almost 12.4 million people worldwide. The United States remains one of the most affected countries with over 3.2 million infections. Brazil has close to 1.8 million confirmed Covid-19 cases, while India is third with almost 800,000, and Russia is fourth with 707,000. None of these countries have reached the peak of the infection, so unfortunately we expect the numbers to continue growing.
Still, yesterday’s employment data from the United States was slightly better than expected, with smaller numbers in both the initial and continuing jobless claims. Despite the resurgence of the coronavirus in the US, the labor market is recovering. If new lockdowns are imposed, however, the situation will likely change for the worse.
Stock indices today are marking losses in the United States due to anxiety about the pandemic. Because the situation is not improving, investors have grown more pessimistic about the economic recovery pace in the United States, which in turn is harming stocks.
Things are significantly better in Europe. Though many countries on the Old Continent continue to see new Covid-19 cases, their numbers are much smaller than before and not posing an immediate concern. Many lockdowns have been completely lifted, and it is already evident that industrial production in Italy and France, two of the most impacted states, is recovering well.
In China, despite a recent rally in stock indices and the yuan, today things are back on the downturn. It could be the result of investors taking in their profits. Nevertheless, traders should keep an eye on China because the United States appears to be gearing up for another conflict.
Reportedly, the US is now willing to offer more military assistance to Taiwan, a country with a somewhat disputed status, whose future is even more uncertain after China’s recent moves in Hong Kong.
