on September 15, 2020
Stocks and Risky Assets Continue a Modest Recovery
- Major global stock markets saw a recovery yesterday, but the Asian session has shown a more mixed picture. The S&P 500 Index closed up by 1.27% yesterday, but the Nikkei 225 Index fell in Tokyo by 0.44%.
- Technically, it appears the recent stock market selloff was a natural correction and not a significant trend change. It seems somewhat likely the recovery will continue.
- The U.S. Dollar is weaker, in line with the long long-term bearish trend established following June’s “death cross” in the USD Index.
- The Forex market is now seeing riskier currencies bounce back against the USD and JPY, with the Euro, the Australian Dollar, and the precious metals gold and silver looking like their strongest counterparts.
- The Chinese Yuan has risen following better than expected Chinese Retail Sales and Industrial Production data releases.
- The WHO reported a new record daily high in global confirmed cases over last weekend.
- Coronavirus daily global death tolls have been falling slightly for more than 6 weeks, with deaths in Latin America and the Caribbean at 41% of the global daily total, well exceeding those in both the U.S.A. (14%) and Europe (approx. 6%) which shows that the epicenter of the pandemic is well established in Latin America.
- Total confirmed new coronavirus cases stand at over 29.1 million with an average case fatality rate of 3.18%. Global mortality over recent weeks is lower than it was during the first peak in April.
- The number of new cases is rising strongly in India, the European Union, and the U.K. The U.K. has recently applied a new restriction against groups gathering of more than 6 people.
- The country with the highest number of new daily coronavirus cases and deaths is India which again saw more than 1,000 deaths yesterday from the coronavirus and reported approximately 80,000 new cases. India has more confirmed coronavirus cases than any other nation except the U.S.A.
- Israel announced Sunday it would impose a three-week national lockdown to fight a high level of coronavirus infection, becoming the first country to impose a second full lockdown after an earlier closure last March. The announcement caused the Israeli Shekel to weaken, but it has since regained some ground as the lockdown aims to keep the private services sector generally open.
- The rate of new coronavirus infections appears to now be increasing most quickly in Albania, Argentina, Armenia, Austria, Bahrain, Belgium, Bosnia, Brazil, Burkina Faso, Burma, Colombia, Cuba, Czech Republic, Denmark, Finland, Georgia, Greece, Hungary, India, Indonesia, Israel, Italy, Jordan, Lebanon, Lithuania, Malaysia, Malta, Morocco, Nepal, Netherlands, North Macedonia, Philippines, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Trinidad, Tunisia, U.A.E., Ukraine, the U.K., and Uzbekistan.