The Geopolitical instability in Asia
The impact of geopolitical flare ups in Asia between neighbouring countries have had little to do with the financial market as the impact has been little. Unless there is a rapid increase in tensions ,it remains ineffective on the market. The border clash between the Indian and Chinese force on border issues also supports this stance.
The Second Wave Effects
Stocks in Europe and Asia have shown little or no regard for the infections concern especially in China. A stream of positive macro statistics such as the very strong retail sales data that clearly shows that the markets passed the low points and this is an indication of strong recovery.
A Bloomberg report also supported stocks as it revealed that the Trump administration is preparing a near $1 trillion infrastructure bill.
Furthermore, the use of a steroid called “Dexamethasone” for treating coronavirus patients is a very good news regarding the treatment of covid-19. It has reportedly reduced covid-19 deaths in hospitalized patients.
The Powel Testimony Continues
Today, the Fed Chair Powel continues to testify in front of the congress. This means traders should watch out as this is one of the major risk on supporter in the market for today.