Daily Market Comment – Virus fears return to haunt markets
- Marios Hadjikyriacos
- Global stocks lose altitude as investors sense something ominous
- Sterling caught in the storm too, loonie slides with oil after OPEC deal
- Dollar and yen stand tall amid flight to safety, gold not so fortunate
Some news that the UK health minister has tested positive for covid likely added fuel to the retreat. The prime minister and the chancellor are also self-isolating, which underscores the government’s gamble to open up everything and bet on the vaccines doing the heavy lifting in preventing hospitalizations.It’s a tough day for gold prices too. A stronger US dollar is anathema for bullion, which is priced in dollars and therefore becomes less attractive for foreign investors as the greenback strengthens. The striking part is that real Treasury yields are pinned down near record lows yet gold still can’t sustain a rally, which is a bad look. The economic calendar is empty today but there’s an ECB meeting later in the week to keep things exciting, as the earnings season fires up.
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