The divergence between our Style and Sector ROOF variants turned into a convergence on the weak side this week as investor’s risk aversion levels surged in the face of rising new infections across major markets hopes for a second fiscal stimulus package in the US before the elections (Nov 3) diminished.
Investor sentiment declined this past week for all markets we track except the UK. Increasingly negative narrative on the resurgence of new Covid-19 infections across Europe and the US, culminating last Friday with the news that President Trump himself tested positive, weighed on sentiment.
Sentiment has now receded to the neutral zone for the US, Global Developed, UK, and Developed European markets according to at least one of our ROOF variants in each case, and for both variants in some (US in particular).
US existing and new home sales numbers for August, and the weekly jobless report. PMI surveys for the US, UK, Eurozone, Japan, and Australia. Interest rate decision by the BoC, and UK and Eurozone consumer confidence.
Covid-19 developments globally and flash PMI surveys for the US, UK, Eurozone, Japan, and Australia will provide an insight into whether these economies continued to recover amid a resurgence in COVID-19 infections.