On Tuesday, March 23, the main events that matter for investors overlap with yesterday’s news: the worsening of the coronavirus pandemic, the developments surrounding the AstraZeneca vaccine, and the crash of the Turkish lira.
The coronavirus pandemic has infected 124.3 million people worldwide to date. Among the United States, Brazil, and India (the number three most affected countries), only the US is currently improving, while Brazil and India are seeing an increase in the daily infection rate.
Europe, too, appears to be struggling with the third wave of the coronavirus pandemic. Vaccinations have been sluggish in the EU and the many disputes surrounding the AstraZeneca vaccine - its safety, its supply issues, its potential export bans - have not made matters any better.
Speaking of AstraZeneca, the British-Swedish pharmaceutical company is now also encountering some glitches in the United States. Though yesterday it was revealed that a massive clinical trial in the US found the vaccine to be safe and effective, today the US National Institute of Allergy and Infectious Diseases raised doubts over the validity of the data the company provided.
As a result, the vaccine might be subjected to further scrutiny in the United States, which will delay its potential approval for emergency use in the US, already granted to the vaccines developed by Moderna, Pfizer, and Johnson & Johnson.
Still, with regard to the pandemic, Europe will remain the most important consideration for investors. Germany is in the process of implementing tighter restrictions again and other EU member states are following suit. The threat of a prolonged recession is keeping sentiment subdued.
Turkish markets are also still scrambling after the firing of the central bank’s chief this weekend. The Turkish lira recovered only slightly from an over 10% slump against the dollar yesterday.
In other news, today US Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell will be testifying before Congress together. Both are expected to stress the continued need for fiscal stimulus, despite the steep rise in bond yields.
