The situation with the global spread of COVID-19 is still dramatic. It has a severe adverse impact on the stock markets. The global indices even plunged below zero in mid-October this year.
The stock markets crashed following a rise in global coronavirus cases and disappointing reports from a number of leading banks. Besides, the lack of progress in US stimulus talks weighed on the indices.
The epidemiological situation is far from stable and keeps the world community on its toes.
In late October, the dynamics in the US labor market were mixed. Experts recorded a rise in the number of initial jobless claims. At the same time, continuing jobless claims turned out to be well below analysts' expectations. However, the decline in continuing claims for unemployment benefits adversely affected the market as investors took that as a deterrent to the adoption of a new stimulus package.
The global COVID-19 vaccines market is going through a difficult period. Johnson & Johnson was forced to pause its coronavirus vaccine trial as one of the participants in the study fell ill. The exact cause of it remains to be investigated. Ely Lilly followed suit. Fearing side effects on the participants, the drugmaker decided to suspend the government-sponsored clinical trial of its antibody drug called ACTIV-19. Pfizer and BioNTech also cannot say for sure whether their vaccine is effective or not. The companies are expected to provide more specific information after mid-November 2020.
Although the yield on 10-year bonds remained almost unchanged, the Treasury market also faced extremely challenging conditions. The 10-year note yield declined by 2 basis points amid concerns over the economic impact of a second wave of the coronavirus infections. At the same time, the yield on global BBB-rated bonds sank 4 basis points despite a possible substantial increase in borrowing (in the amount of $82 billion) and potential incentives from the US Treasury.
In addition, prices for used cars in the United States fell. The Manheim Used Vehicle Value Index was down by 1.6% in September. At the same time, the indicator remained 15% higher than last year. According to analysts, automotive manufacturing plants running at full capacity supported the car industry. During the reporting period, car sales increased by 1 million units on a monthly basis. Experts believe that the current used-car price level allows auto makers to drive up the value of new products and maintain high returns.
The reports on new coronavirus cases, medical assistance, and the mortality rate remain in the focus of investors. Besides, market participants are mulling over the news about the new tougher anti-coronavirus restrictive measures in Europe and the United States. The data on US weekly jobless claims is also crucial for the market. Investors are trying to assess risks and get a better sense of what to expect in the labor market from the second COVID-19 wave. In addition, traders' attention is devoted to the reporting season. Such giants as Microsoft, Intel, Coca-Cola, Philip Morris, and others are expected to release their quarterly earnings reports in the near future.
