A slight correction was observed in the US market yesterday. Nasdaq Composite went down by 1%, while the S&P 500 slipped by 0.4%. The DJIA, meanwhile, posted 0.16% growth.
This happened even though the Federal Reserve released its Beige Book, which indicated that economic activity in the US accelerated to a moderate but steady pace. Apparently, there is an increase in demand for real estate, rise in prices and recovery in the labor market.
As for Asian markets, Japan showed 0.1% growth yesterday, while China underwent a 1% decrease.
Obviously, the main reason is the third wave of COVID-19, where approximately 804,000 new cases were recorded yesterday. India is leading with 200,000 cases, followed by the US with 78,000. Brazil is in third place with 75,000 and has a huge mortality rate of 3,500.
Europe is just as bad, with France listing 43,500 cases. Turkey and Germany also posted high infection rates, at 63,000 and 32,500 respectively. Experts believe that the problem is the new strain of coronavirus, which is more infectious than the first.
Forecasts:
The DJIA is currently at 33.730 points. It is projected to range from 33.300 to 34.000 points today.
Meanwhile, the USD index closed at 91.60 points yesterday. It is forecasted to hit 91.20–91.80, depending on the sentiment in EUR/USD.
USD/CAD costs 1.2520. It is expected to range between 1.2500-1.2700 today.
Important: A report on US employment will be released today. Weak figures may cause a strong pullback in the US market.
