Markets shrug off corona and inflation fears to send stocks higher globally.
- Risky assets bounced back yesterday, from stock markets to “risk” currencies to major cryptocurrencies.
- In the Forex market, the Japanese yen and US dollar are weaker, while the New Zealand and Australian dollars and the British pound are stronger. The U.S. Dollar Index has pulled back from its multi-month high reached yesterday, but remains in a valid long-term bullish trend.
- The two largest cryptocurrencies, Bitcoin and Ethereum, rose strongly yesterday after Bitcoin flirted with its key multi-month low below $30k. The immediate danger of a spectacular breakdown in Bitcoin seems to have passed.
- Today will bring the monthly policy release from the European Central Bank which will probably cause volatility in the euro.
- President Biden is claiming that his economic plan will reduce inflation over the longer term.
- Last week saw a sharp, fourth consecutive weekly rise in global new confirmed coronavirus cases, suggesting that the pandemic is advancing again due to the spread of the more highly infectious Delta (Indian) variant, which vaccines are clearly less effective against at least in terms of preventing infection.
- It is estimated that 26.6% of the world’s population has received at least one vaccination against the novel coronavirus.
- Total confirmed new coronavirus cases worldwide stand at over 192.8 million with an average case fatality rate of 2.15%.
- The rate of new coronavirus infections appears to now be increasing most quickly in Algeria, Australia, Bahamas, Bangladesh, Burma, Cuba, Cyprus, Denmark, Fiji, Finland, Georgia, Greece, Indonesia, Iran, Iraq, Japan, Kenya, South Korea, Laos, Malaysia, Malta, Mexico, Morocco, Netherlands, Portugal, Pakistan, Russia, Senegal, Spain, Vietnam, Uzbekistan, and the United Kingdom.