Risk-assets are experiencing healthy and expected volatility, given the surrounding circumstances. More than one-third of the S&P companies, representing nearly half of its total market cap, reported earnings this week.
Yesterday, the S&P finished down by another 3.5%, mounting a loss of nearly 5% on the week. Whereas the NQ lost 3.9% yesterday, it has managed to shed only 3.8% on the week.
Risk-assets are down sharply at the onset of U.S. hours. Heavy selling began at the European open and on news that German Chancellor Merkel will look to close bars and restaurants for November.
U.S. benchmarks are on their back foot to start the week as the risk-appetite recedes due to deadlock in Washington, virus resurgence, and a gloomy earnings outlook.
U.S. benchmarks rebounded yesterday from crucial levels of technical support. The session low came against our major 3-star support at the opening bell and a failure to go lower provided a tailwind for a pivotal intraday recovery despite an unenthusiastic news cycle.
