Europe Points Higher, Covid Concerns Remain
Fiona Cincotta October 14, 2020 7:35 AM
European stocks are pointing to a mildly positive start on Wednesday, although any gains are expected to be limited as covid fears remain.
Wall Street closed lower overnight, snapping a 4-day winning streak as coronavirus concerns dragged on sentiment and additional US fiscal stimulus looked even more elusive. European stocks are pointing to a mildly positive start on Wednesday, although any gains are expected to be limited as covid fears remain.
However, with covid cases rising in the UK and on the old continent more localised lockdown will keep risk sentiment in check. The UK is even considering a two-week circuit breaker lockdown in the coming weeks. Let’s not forget that we are only in Autumn, meaning that this could be a very long winter as governments struggle to get control of the spread of the virus. Needless to say that these measures could quickly derail the already very fragile economic recovery.
Brexit talks will be in focus as the 15th October deadline draws into focus and it appears that very little progress has been made between the EU and the UK. British PM Boris Johnson is set to meet with EC President Ursula von der Leyen in attempt to inject some urgency and political momentum into the talks before Boris Johnson potentially walks away from talks tomorrow.
More US banks earnings
US Earning season kicked off with a bang with north JPMorgan and Citibank managing to impress. Bank of America, Goldman Sachs and Wells Fargo will be in focus today
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