During early Wednesday, the Coronavirus (COVID-19) Delta variant tests the market’s risk appetite. While Asia-Pacific is the hardest damaged region, the market is also focused on concerns about the UK’s greater death toll and pessimism about the European Union’s (EU) tourism sector.
Australia’s Prime Minister Scott Morrison is facing criticism from state leaders as a result of AstraZeneca’s refusal to use the drug in people under the age of 40, despite the fact that the country is currently experiencing over 100 covid infections per day. The virus strain’s latest fears are related to community transmission in New South Wales (NSW). The newest “zero instances” from the Australian Capital Territory (ACT) and Western Australia (WA) have tempered the pessimism amid political upheaval and the continued lockdown of over 80% of Australia’s population.
Germany, on the other hand, reports a slight improvement, with infections down to 808 and 56 deaths. Furthermore, the UK reported 20,479 new COVID-19 cases on Tuesday, compared to 22,868 the day before, and covid-related deaths increased from 3 to 23 within the time period.
Although the UK has already postponed the unlock to July 19, the European Union’s (EU) fears about British visitors visiting the union pose a threat to the region’s tourism-dependent businesses, particularly in the south. “Inbound tourism accounted for 10% of the gross domestic product in Portugal and Greece, and nearly 6% in Spain in the year before the epidemic,” the Financial Times (FT) reported, citing the Organisation for Economic Co-operation and Development (OECD) reports.
In other countries, India has seen a little increase in total infections, while Indonesia has seen a similar increase, as both countries struggle to inoculate at a faster rate.
Despite the market’s problems, the S&P 500 Futures are up 0.13 percent, near a record high, while the US dollar index (DXY) is struggling near a weekly high. It’s worth noting that recent market movements have been limited by the muddled Fedspeak and pre-ADP caution.
Despite fears about the coronavirus, S&P 500 futures defend bulls.
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