It is a new week on the financial markets, and one that begins with some negative news. The number of coronavirus cases around the globe has now reached over 8 million. The United States is home to 2.1 million of the Covid-19 infections and is seeing new cases again. Brazil is also severely affected by the pandemic and is approaching 900,000 coronavirus cases.
There have also been new cases in China and Tokyo, the first few in a while. Countries in Central Asia, South America, and Eastern Europe are also still seeing rising Covid-19 numbers.
Data released today from China shows the country, which has the second largest economy in the world, has been affected by the pandemic more than previously estimated. Both the May retail sales and industry reports disappointed investors. This news alone was enough to put investors off of risky assets and make them crave the safety of the US dollar again today.
The pessimistic mood among traders and investors is also affecting the stock market negatively, causing decreases in all major indices.
Things are going a little bit better in Europe. Most of the continent has been phasing out of the lockdowns over the past few weeks. This week we are likely to see even more reopenings and a restoration of normality as so far there have not been any major signs of a second wave of the coronavirus pandemic in Europe.
In other news, today we could hear more about the negotiations between the EU and the United Kingdom regarding Brexit as we inch closer and closer to the deadline to determine whether to extend the transition period or not.
Later in the day there will be speeches by Federal Reserve policymakers, but likely none will be as important as Chairman Jerome Powell’s testimonies later this week.
