Week in a Glance: pandemic, no stimulus, but Britain is back

26. Okt. 2020

The past week was marked by the pandemic reaching a fundamentally new level. The situation in Europe is many times worse than in the spring, and what is most regrettable is that every day everything is only getting worse. The United States seems to be entering the third wave, and the world as a whole records 400K new cases per day.

The announcement of lockdowns by Ireland, Wales and the Czech Republic was quite expected. In addition, some regions of the UK have moved to the maximum level of restrictions. And these are just the first signs. The situation will clearly continue to deteriorate for the foreseeable future. The news that remdesevir has been approved as a cure for coronavirus in the United States do not change anything, just because the effectiveness of the drug is more than questionable. The only thing remdesevir is good for, judging by the research results, is to speed up the healing process somewhat. The start of Pfizer vaccine production before the end of the third phase of testing is encouraging news, but again, it will not solve the problem either here and now or in the coming months.

And against the backdrop of all this negativity, Democrats and Republicans in the United States have not been able to agree on a stimulus package for the economy. As expected, everything is postponed until the elections.

By the way, about the elections. The debate last week failed to help Trump bridge even part of the gap. A week before the vote, his chances look just as elusive and slim.

In general, the US stock market is in danger, as are the commodity markets. So this week we will continue to sell on the US stock market as well as in the oil market. Sales of palladium and a number of grains such as soybeans and corn also look promising.
Perhaps the only positive news last week was the return of Great Britain to the negotiating table. But so far, this has not led to the emergence of a trade agreement. So, there is nothing to be happy at.

The coming week should finally bury the chances of stimulus in the US before the elections. Breakthrough on Brexit is possible, but is unlikely. In addition, data on US and Eurozone GDP for the third quarter will be published. Considering that analysts' forecasts promise the maximum quarterly growth of indicators for the entire history, this is almost the only hope of buyers in the US stock market. Although no, there is one more - the earnigns season in the United States. This week, the largest corporations in the world are reporting, including almost all of FAANG, so this week will definitely not be bored.