What has occurred over the weekend?
Friday saw a countermovement on the stock markets after the sharp declines on Thursday. The US leading index, the S&P 500, rose by 1.3% and the majority of European stock markets were also slightly up. During the weekend there was news from China regarding a new wave of infections. In Beijing, the city’s largest fruit and vegetable market and nearby residential areas had to be closed after several new Covid-19 infections were discovered in these places. The Chinese deputy prime minister said that there was a high risk of further spread.
These reports influenced today’s Asian trade meeting. The Japanese leading index, the Nikkei, closed down 3.5%. The futures exchanges for European and US stocks also point to losses today. Credit safe government bonds, on the other hand, posted gains. The yield of 10-year US government bonds fell to 0.66% and that of German bonds to -0.44%.
Prognoses are no reliable indicator for future performance.