Covid cases soaring and restrictions are being put in place
The major European stock indices spiraled to the downside today as Covid cases are soaring and restrictions are being implemented. The provisional closes are showing:
- German DAX, -4.42%
- France’s CAC, -3.69%
- UK’s FTSE 100, -2.84%
- Spain’s Ibex, -2.5%
- Italy’s FTSE MIB, -3.6%
German’s Merkel is just out saying the speed of the virus is spread is especially high, and we are seeing exponential growth. She adds:
- numbers in intensive care units have doubled over the past 10 days
- in many areas we are no longer able to track and trace because of capacity limits
- curve must be flattened again
In the European debt market, the benchmark 10 year yields were mixed with investors moving into German and UK debt but shunning Spain, Italy and Portugal.
A look at other markets as London/European traders look to exit shows:
- spot gold is tumbling $26.68 or -1.4% at $1881.33. The precious metal is following the flows into the US dollar
- spot silver is down $0.97 or -3.99% at $23.39
- WTI crude oil futures are down $2.40 or -6.04% at $37.19. The low for the day reached $37.04. That is just above the 38.2% retracement of the move up from the April low which comes in at $37.06, and the low from September at $36.93.
In the US equity market, the major indices are down around 3% but off there lows:
- S&P index -98.89 points or -2.92% at 3291.70. The low price reached 3284.51. The prices below its 100 day moving average at 3306.27
- NASDAQ index is down 351 points or -3.07% at 11080.92. It’s low reached 11064.27
- Dow industrial average is down 800 points or -2.9% at 26665. The low price reached 26579.14
In the US debt market yields are little changed despite the sharp move to the downside in equities.