ASX 200 loses momentum as COVID cases rise overseasThe ASX 200 market has taken direction from the souring virus picture in the northern hemisphere. Attention slipping from vaccine progress and optimism over democratic sweep.
Monday saw the ASX 200 give up early gains to close down 11 points to 6156 as the index remained in a pause.Stimulus talks remained in the spotlight in the US with conflicting headlines coming out of the White House. Treasury Secretary Steve Mnuchin said that “several differences” remained between the two parties, despite meeting with House Speaker Nancy Pelosi through the week.
Tuesday saw the market fall 1.7% with attention focused on the souring virus picture in the northern hemisphere.The US recorded nearly 84K new cases for the second day in a row, whilst Spain and Italy imposed new lockdowns in Europe. Vaccine hopes drowned out by negative headlines.
Wednesday saw the index open weaker again with little positivity on the virus, vaccine, or stimulus fronts.
What else is happening this week:
- US lawmakers abandoned efforts to reach an agreement on a new round of stimulus before the election.
- On the desk we talked about the possibility of the market looking very different next week, with a clear election victory (Biden with a 7.9 point lead at the moment), some stimulus clarity and with vaccine news expected in the coming days.
- US quarterly earnings season rolls on.
- One-third of the S&P 500 have now reported.
- Beat rates remain elevated but down a bit from Q2. The takeaways have been mixed and seem to be focussed on company specifics, rather than broader themes.