Fundamental data released in the U.S. painted a conflicting picture, concerning the health of the world’s largest domestic economy.
Reports showed that Orders of core US Durable Goods increased to a six-year high in September, coming in at 1.9% vs the expected rise of 0.5%. However, as this figure rose, the Consumer Confidence index fell, and was recorded at a reading of 100.9 in October, from 101.3 in September.
Consumer confidence has fallen as COVID-19 cases in the US reached their highest levels since the start of the pandemic.
Germany set to revise GDP forecasts
Today, it was reported that Europe’s largest economy, Germany, will revise its growth domestic product (GDP) forecasts for the remainder of 2020.
Germany has so far recorded 450,000 coronavirus cases, with over 10, 000 deaths, which is a fraction of the numbers recorded of neighbouring France. As a result of the handling of the outbreak, the German economy was not as impacted as other major European economies.
Although the economy is still in recession, the German government is expected to raise forecasts, with GDP expected to shrink 5.5% in 2020 compared to a previous estimate for a 5.8%.
The DAX fell 0.93% today, after yesterday’s selloff.
20,000 new COVID-19 cases in UK, FTSE falls
COVID-19 cases in the UK continue to rise, with daily infections now comfortably surpassing the rates recorded during the peak in March.
Data released from the UK on Tuesday showed that the UK had recorded a further 22,885 new coronavirus cases, compared with the 20,890 positive cases recorded on Monday.
Of those infected, it was said that 367 people died, which is the highest daily death toll since May 27th. This came as the growth in the British high street slowed, with retail sales falling to -23 in October, its lowest level since June.
The FTSE 100 was down 1.09% on today’s news.
Quote of the day – “You have to identify your weaknesses and work to change. Keep a trading diary – write down your reasons for entering and exiting every trade. Look for repetitive patterns of success and failure.”Alexander Elder
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Senior Market Analyst