A decline in trading is expected in Europe (including the Milan Stock Exchange) in a context in which fears of a third wave of coronavirus infections are rising. The markets of the Old Continent seem so ready to follow the weak sentiment seen in Asia, confirmed by the Nikkei 225 index which closed down 0.61% at 28,995.92 points. Hong Kong did worse, down to -1.5%.
In the course of the week, the focus is likely to be on news of growing infections in Europe that could delay plans to loosen restrictions and lift lockdowns. In some parts of France the partial blockade phases have started again and in Germany, according to some rumors, an extension of the current lockdown measures is being considered.
On the macro level, industrial orders and sales for Italy are scheduled today, but also sales of new homes for the USA. The speeches by Powell (Fed) and Janet Yellen in her new role as US Treasury Secretary before the House Financial Services Committee on the Cares act and Fed are also on the agenda. Two voting members of the Fed will speak in the afternoon: Williams and Brainard.
Meanwhile, yesterday’s session was positive on Wall Street, with the Dow Jones rising 103 points (+ 0.32%) to 32,731.20 points, and the S&P 500 rising 0.7%. , at 3940.59 points. Focus on the words of Federal Reserve number one Jerome Powell who, yesterday, stressed that “the recovery (of the US economy) has progressed faster than expected in general and appears to be strengthening. This is significantly due to unprecedented fiscal and monetary policy interventions… which have provided essential support to families, businesses and communities ”. “But – warned Powell – the recovery (from the Covid-19 crisis) is far from complete. As a result, the Fed will continue to provide the economy with the support it needs for as long as it needs. ”