Markets Stutter on New Covid Strain & London Tier 3

Yesterday saw European markets unnerved and the FTSE 100 perform lower than expected after the announcement that London and most of the south east of England will be moving into tier 3 restrictions due to a new strain of coronavirus spreading at a quicker rate.

US markets finished similar,  and eyes where on Capitol Hill and a possible deal.

Asia was still down due to the level of coronavirus cases worldwide. 

The Chinese economy continued to rebound from their Covid-19 crisis earlier this year, as well as the lack of a 2^nd wave there.   Chinese retail sales still remained below level down 4.8% and Industrial production also stayed resilient at 7%.

Comment

Market volatility will remain until both Brexit and Covid-19 are tackled. 

The new covid-19 strain (sometimes called the Spanish strain) is adding uncertainty for investors leading up to the Christmas period with concerns that vaccines may not be as effective.

That said, on a positive note, if the UK and EU are able find solutions to the sticking points of the trade agreement then markets will react positively, that said time is short.