On Wednesday, markets around the world remain observing several international geo-political affairs including Brexit, rising U.S. Covid cases and measures as well as decisions taken by Germany and France in fight against coronavirus. The issues being critical for global economic recovery, can weighed on markets across the globe especially over the next few months.
Investors closely monitored Brexit negotiations, with British Prime Minister Boris Johnson set to meet President Ursula von der Leyen of the European Commission on Wednesday for so-called last-chance talks before a ‘very tricky’ Brexit. The EU summit on Thursday and Friday is seen as the deadline for an agreement which before 31 December 2020, the date of the UK’s final departure from the EU, would also have to be ratified by the British and European Parliament.
The number of cases of Covid-19 in the United States has risen by 1 million from 14 million to 15 million in just 5 days, and since Monday, Southern California has been locked down.
Investors are still looking anxiously at the worsening health situation in the United States and Germany, where Chancellor Angela Merkel on Wednesday called for new restrictions in Germany before mid-January. An emotional Chancellor told the Chamber of Deputies, “The number of contacts between citizens is too high, the reduction in the number of contacts is inadequate.”
Although the regular number of Covid-19 cases in Germany has exceeded 20,000, Merkel said she “justified” the group of experts’ recommendations to close all non-food stores and schools, including “justified” ones. And the chancellor recommended that communications between now and the holidays be “minimal” limited, also considering the prospect of going forward with the start of school holidays.
The slower-than-expected progress in the situation in France, where health authorities are due to take decision on Thursday, could lead them to postpone the de-confinement initially announced for 15 December.