Markets consolidate as U.S. sees rise in COVID cases

As fears of a second wave of coronavirus cases grew in China, with the capital Beijing under lockdown. Several U.S. cities also recorded a rise in new cases.

Texas, Arizona, Florida and Oklahoma were among the states that saw a record increase in new infections on Tuesday as businesses reopened.

Nevada also reported its highest single-day tally of new cases on Tuesday, up from a previous high on May 23. Hospitalizations are also rising or at record highs.

With some markets already pricing in a second wave, the S&P 500 and the Dow were largely flat on Wednesday, consolidating gains from earlier in the week.

“Parrot” Powell reiterates Fed willingness to do more

After his 2nd day of testimony in front of the senate banking committee. Jerome Powell, continued to state the Feds willingness to do all that is required to assist the economy. 

Soon after stating that the Federal Reserve would use its “ full range of tools” to aide a recovery, he went on to add, “If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing,”

Markets have already priced in his comments, and were generally numb to the news. The Fed went on to confirm they will be moving away from ETFs and directing funds into corporate bonds.

French economy expected to contract by 17%

After months of lockdown, it has come as no surprise that France, like many other European countries has seen a contraction in the size of its economy.

However, in somewhat positive news, France’s economy should shrink less than expected in the second quarter as business activity began recovering in May

In a report by INSEE, they expect the euro zone’s second-biggest economy to contract by 17% in Q2 after a previous forecast of  20%.

The CAC in France rose on the news, before later consolidating at 5005

I believe in analysis and not forecasting.

Nicolas Darvas

Biggest Bull

AUDCAD: After starting the day at the support level of 0.93057, AUSCAD rallied to now trade at 0.93609. In one of the more bullish moves in a day where many markets consolidated.

Biggest Bear

Bitcoin: Trading as high as $9,566 at one point today, Bitcoin fell considerably as the day progressed. Dropping to as low as $9,344, before bouncing at the support.