Financial markets are still primarily focused on the fight against COVID-19. In the U.S., coronavirus deaths are now climbing at a staggering pace and concerns are high that many states have acted too slowly in providing measures to mitigate the spread of the virus.
Europe is also reporting terrible news on the virus front as both the UK and France have had some of their deadliest days with the outbreak. Italy may have some optimism that deaths and new cases are stabilizing and Spain may be showing signs that the death rate is declining. Asia is once again tightening their borders as a new wave of infections may have been imported. Global economic activity will not return anytime as over 90% of the world’s GDP has some type of social distancing measure in place.
Over the next couple of months, the economic data will be disastrous in both Europe and the U.S. A lot of the negative sentiment is already priced into the market, but if traders become skeptical that much of the…
