Global markets trading lower on Monday as investors remain concerned about a fresh spike in the number of coronavirus cases and a number of restrictions imposed mainly by European countries. Europe reported more than 1.3 million new cases this past week, its highest single week count yet, according to the World Health Organization. France set a new daily record for coronavirus infections with 52,010 recorded in 24 hours, official data showed Sunday.
Spain has introduced a nationwide curfew — from 11 p.m. to 6 a.m. — as COVID-19 cases shoot up across Europe. Italy also announced several restrictions, including close bars early and shutting gyms and entertainment places. Wales began a 17-day lockdown this weekend, shuttering all nonessential businesses and requiring people to remain home, with few exceptions.
“The pandemic is spreading rapidly again, even faster than at the start of it more than half a year ago,” German Chancellor Angela Merkel.
Global stocks and US futures fell on Monday due to the lack of progress in stimulus negotiations and surging coronavirus cases in Europe and the United States.
Crude oil prices dropped to a fresh weekly low on Monday amid mounting concerns of a slower recovery in the fuel demand due to the renewed lockdown measures in the United States and Europe. This week the Oil investors continue to follow the new updates from the stimulus talks and oil inventory report.
In the currency market, the EURO fell to a new session low as the greenback rebounded across the board and weaker-than-expected German IFO data.
Gold price started the new week on a bearish note after the corrective growth of USD. The main drivers for the precious metal remain the US stimulus negotiations, central bank meetings, the resurgence of coronavirus cases, and the movement of the US dollar.
On the data front, the German IFO business climate index came in at 92.7, from 93.2 in September. While the current assessment component improved for the fifth month in a row to 90.3, from 89.2.
Moving ahead to the North American session, the investor's main focus remains the US stimulus headlines. During the weekend, House Speaker Pelosi stated that there is still some hope for a stimulus deal before the election. She stated, "I never give up hope. I am optimistic. We put pen to paper and had been writing the bill based on what we hope will be the outcome, what they said they would get back to us on".
According to Johns Hopkins University, the global coronavirus cases stands at more than 42.7 million. More than 1.1 million people have died, while more than 28.8 million have recovered.
EUR/USD: The currency pair rebounded back to above 1.1825 after fell to a fresh weekly low of 1.1800 during the Asian session.
The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1840 and 1.1880.
GOLD: The yellow metal slightly rebounded from the Asian session lows. At the time of writing, the gold price climbed back to above $1900 area.
The important levels to watch for today: Support- 1900 and 1890 Resistance- 1910 and 1920.
Quote of the day: One of the many funny things about the stock market is that every time one person buys, another sells, and both think they are astute-William Feather.