Today the coronavirus continues to be the most pressing concern for the financial markets. The number of Covid-19 cases worldwide is approaching 52 million.
The United States registered 142,000 new coronavirus cases yesterday, beating its previous record for the highest daily increase, which was reached only last week. The country has had more than 10.5 million infected so far. At the moment, the virus is spreading most rapidly throughout the Midwest, where hospitals are quickly running out of space for new patients.
While the White House has been quiet on the possibility of further lockdowns, local authorities are beginning to implement some restrictions, such as curfews for businesses.
The situation is also critical in Europe. France, Italy, and Spain are the most affected parts of the continent, though Germany and Poland are doing similarly. There is some hope that things will calm down because countries like Ireland and the Netherlands, which entered lockdowns before anyone else, have managed to slow down the spread of the virus.
In other news, today the market also received a shock from China, where new legislation regulating the country’s massive tech sector is pushing stock prices down. In addition, experts are worried over China’s continued anti-democracy pressure in Hong Kong, where a number of officials have lost their jobs and others quit in protest.
As for the relationship between China and the United States, right now TikTok remains caught in the middle. The company is facing another deadline to find a US partner and has voiced a concern that the US authorities have not been engaged in the process since the elections.
US stock indices are performing much better today due to hopes for incoming stimulus from the Federal Reserve. The US Congress has failed to agree on a bill for fiscal stimulus and is not likely to do so while Capitol Hill is busy arguing over the election results, so the central bank signalled it might be ready to step in and support the economy in the meantime.
