Second wave of COVID-19 | 06 November 2020

#DAX30:

Growing COVID-19 infection numbers are putting at risk the prospects for continued economic recovery in the euro zone Bank of Italy Governor Ignazio Visco said. In a speech to bankers in Rome, Visco, who sits on the European Central Bank's governing council, also said the risk of deflation in the euro zone has declined compared with six months ago but must still not be ignored. Second wave of COVID-19 now rampant in much of Europe "risks producing a new slowdown in production and demand for goods and services in the near term." The ECB sent strong signals that another easing package would be in store in December, as the economic outlook had darkened notably.

Trading recommendation: 11540 -11844.

#SP500:

The U.S. Federal Reserve made key adjustments to its Main Street Lending Program. The Fed said it was lowering the minimum loan amount to $100,000 from $250,000, complying with a change requested by small business advocates who were concerned the program was not accessible to some mom and pop shops affected by the pandemic. The U.S. central bank also adjusted fees charged by the program to encourage the issuance of smaller loans. The US Federal Reserve has published a fresh statistics on the change in excess reserves of commercial banks. Provisions increased by $ 20.3 billion over the past week. This is a positive signal for the stock market!

Trading recommendation: Buy 3250 and take profit 3344.

#WTI:

The UAE, Kuwait, and Iraq are uncertain about extending OPEC oil production cuts into 2021, which means that come November, the OPEC deal could come into question despite the clear demand lag amid a pandemic that shows no sign of letting up. This throws a wrench into efforts to rebalance the market, and even though Saudi Arabia, and even at-times-hesitant Russia, appear ready to continue 7.76 million bpd of cuts into the New Year. A time of massive uncertainty over U.S. presidential elections and the economic scourge of a resurgent pandemic, OPEC may add to oil’s woes.

Trading recommendation: range 33.00 -35.55.