At the start of a new week in the financial markets, the coronavirus pandemic returns as a major concern for investors. The number of daily infections has been increasing for over a week now in a clear indication that the pandemic is ramping up. The most affected areas at the moment are those that are struggling to vaccinate their populations, mostly in the European Union and in South America.
In Europe, Italy had over 20,000 new Covid-19 cases yesterday, while France confirmed another 30K. Germany, Poland, the Netherlands, and more are continuing to see worrisome trends as well. Lockdowns in the EU will continue well into April, leading the region into an even deeper recession.
Brazil and India, who are second and third in terms of total Covid-19 cases in the world, are also seeing troublesome increases in the incidence of Covid-19.
Meanwhile, AstraZeneca still remains in hot water over its coronavirus vaccine. France has decided to only distribute this particular vaccine to people over the age of 55, while several Scandinavian countries are still investigating a possible link between the vaccine and blood clots, despite the EMA finding it safe last week.
At the same time, a clinical trial of AstraZeneca conducted in the United States found the vaccine to be 79% effective in preventing Covid-19 symptoms and 100% effective in preventing severe Covid-19 and death. The trial may underpin an approval by the FDA to use AstraZeneca alongside the other three vaccines already utilized by the United States.
Due to the coronavirus pandemic once more taking charge of economic sentiment, reflation trading will likely pause this week. Instead, tech stocks are seeing a resurgence, as they were among the most reliable assets during the peak of the pandemic in 2020.
The Nasdaq 100 will make the biggest gains out of all major US stock indices, considering the high concentration of tech stocks within it.
For those following the stock market, GameStop is one company to watch today. At the center of the short-squeeze scandal earlier this year, GameStop will publish its first earnings report for 2021.
Traders interested in high volatility should take a look at Turkey today. President Erdogan once again caused major controversy by firing the chief of Turkey’s central bank after the regulator hiked interest rates last week. The central bank had reacted to rampart inflation and was aiming to protect Turkey’s currency from devaluation, but Erdogan’s move sent the lira tumbling.
