Global equities and the appear to be approaching a possible turning point with the stimulus trade. Global equities have been widely supported by unprecedented stimulus from central banks and governments, but that seems to be losing some of its firepower, while the steady demand for US Treasuries has buoyed the dollar. The next major move with risk appetite will likely stem from expectations on when key economies reopen.
In the US, Georgia will give key insights into how comfortable businesses and consumers are with reopening their economy. The risks of seeing a spike in cases over the next few weeks seem fairly high and that could eventually set them back even further if they have to return to lockdown mode. Georgia is one of the most important stories right now as it could potentially provide a path on what to expect when other states reach their thresholds to begin reopening.
The focus next week will remain on COVID-19, big tech earnings and rate decisions by BoJ, Fed and…