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Marketmind: Lockdown trading -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. A person walks out of a vaccination centre during the COVID-19 outbreak. Austria’s government has placed a ban on those who have not been fully vaccinated in Vienna (Austria), November 18th, 2021. REUTERS/Leonhard Foeger/File

Danilo Masoni gives a glimpse at the future.

The markets have been alerted to COVID-19 risk and investors quickly switched to locking down trading mode after Austria placed 10-days nationwide restrictions in response to the outbreak of winter virus.

The Asia hour saw oil hit 7-week lowest levels and European equity markets are likely to see a soft start. After registering their first weekly fall in seven week, Friday’s data showed that bond yields fell and bank stocks dropped. At 16-month lows, the euro is also in trouble.

There are concerns that Germany and other nations could do the same, causing millions of people to leave home. This would impact tourism-dependent countries and outdoor businesses right before Christmas.

No surprise then, that Spanish and Italian stocks appear particularly vulnerable at this point, while Big Tech companies and the online economy are again in favor, driving Nasdaq futures past new records overnight.

In the meantime, shares in vaccine manufacturers could reap benefits. German lawmakers are considering making COVID-19 vaccines mandatory, while other countries consider what to do about the non-vaccinated.

The corporate world is watching closely. Telecom Italia (MI) After KKR offered $12 billion to buy the Italian phone company private, Ericsson (BS) also appears on the list after Vonage, a cloud communication firm purchased by KKR for $6.2billion, agreed to purchase the equipment.

COVID cases, https://fingfx.thomsonreuters.com/gfx/mkt/mypmnkwdqvr/Morning%20bid.PNG Key developments that should provide more direction to markets on Monday: * Chinese loan prime rate * Euro zone flash consumer confidence * ECB speakers: ECB Vice President Luis de Guindos, ECBboard member Andrea Enria, ECB Governing Council members RobertHolzmann, Peter Kazimir and Martins Kazaks * Emerging markets: central bank meetings in Israel andGhana * WTO meeting * U.S. existing home sales Oct * U.S. Treasury 2-year and 5-year debt auctions * Europe earnings: Nasper/Prosus * U.S. earnings: Urban Outfitters (NASDAQ:), Zoom

 

 

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