Is it time to start talking about circuit breakers again?
- Rise in US coronavirus cases could unnerve markets at the open, but there are caveats
- Weekend news - record number of US coronavirus cases and hospitalisations continue
- Six markets in Beijing closed on concerns of new coronavirus outbreak
- Tokyo reports the highest number of new COVID-19 cases since May 5
The sour risk mood is reverberating across the market to start European trading, and that is weighing on risk assets as we get things going on the session.
Stocks are heavily lower with European indices poised for a sharp decline at the open later and bonds are rallying amid risk-off conditions in the market.
Market participants are alluding to renewed coronavirus jitters (⬆️) as the main reason for all of this but there were already signs of nervousness towards the end of last week to be fair. This just piles on top of that and creates more fear in the market.
As US futures are ~3% lower currently, perhaps it is time to check out circuit breaker levels in case we start to move towards there later in the session.
For S&P 500 futures, the trigger level to watch on the downside will be 2,876.50 and for Dow futures, the trigger level to watch on the downside will be 24,183.
