New rounds of locks downs?
What could be shocking, is not anymore! Austria enters in full lockdowns to stem a spiraling infection rate. While many countries around the globe already had fully imposed a nationwide vaccine mandate, we passed the 5.1M total death and 4,681 just in the past 24 hours. And today many market participants were shocked by the report about Austria becoming the first European country to announce a full lockdown.
This brought the shock and red numbers on the stock markets boards, especially when Jens Spahn, Germany’s health minister saying that Germany also can be under pressure to do the same. The new restrictions in Austria and some states in Germany, targeting everyone, including vaccinated groups.
The news triggered a sell-off in European stocks and US futures, and now we have to wait for the US cash market to open and see what will be the Wall Street reaction.
On the economic data front, earlier today we had the UK retail sales and Germany's producer inflation. UK retail sales in October increases by 0.8%, while Core retail sales fell -1.9%, but both of them had better results than estimates. While retail sales increased in the UK, the German producer price index hit 18.4% annually and 3.8% monthly in October, due largely to soaring gas and electricity prices. However, it was not enough to avoid the dovish tone of Mrs. Lagard, dismissing the need to react to a spike in inflation.
Euro lost more than 0.85% against the USD, and technically also it is under pressure. DXY safe-haven demand and Risky market in the Eurozone, can hold the trend and put more pressure on Euro.
