Key aspects:

Stock markets ended October with significant corrections, highlighting some European selectives such as the DAX, which dropped more than 9%. The continuous expansion of COVID-19 in Europe and the USA is the main explanatory reason. The new partial confinements in almost all the countries of the Old Continent sow doubts about the economic situation in the medium term.
Several pharmaceutical companies were forced to suspend the development of vaccines and medicines against diseases of some patients, which sowed pessimism among investors. Another generator of volatility was Donald Trump’s positive for COVID-19 given the uncertainty of his viability as a candidate for reelection in case of serious illness.
One of the bearish factors was the lack of agreement between Republicans and Democrats to approve the new fiscal stimulus program in the United States. Throughout the month it was an aspect that added volatility to the stock markets. However, the market discounts that after the elections the new aid plan will arrive imminently.
Previous electoral polls give Biden the clear winner in the presidential race for the White House. Although he is not the preferred candidate for Wall Street, there have been no sudden movements in the market after the polls were known or after the various electoral debates were held.
The European public debt experienced significant price increases that translated into further contractions of the IRR. The references of Italy and Greece stand out, which set new historical lows in their 10-year profitability, standing at 0.649% and 0.757% respectively.
At the macro level, the publication of the North American GDP corresponding to the third quarter was surprising to the upside, which stood at + 33.10% compared to the + 32.0% expected and -31.40% previously. At the PMI level, there is a greater recovery in the manufacturing sector compared to the services sector, the latter being located in the contraction zone for the vast majority of European countries.
Inflation in Europe continues to fall and stands at -0.30%. This adds further pressure to the ECB, which has called on the market at its December meeting to announce new monetary measures.

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