Key aspects:

During September, the stock markets registered general declines, highlighting those of the technological Nasdaq, which lost about 6%. The main reason was the large overbought achieved during the previous months. Other bearish factors were:
– The announcement of AstraZeneca temporarily suspending the trial of its vaccine against COVID-19 up to two times after detecting severe conditions in 2 patients.
– The increase in tension between the US and China, threatening Trump with sanctions on Chinese companies operating in the US.
The indices of Europe and especially Spain, badly hit by the banking sector that has marked historical lows. In addition to being a very cyclical sector, it has been involved in a new money laundering scandal that would affect large entities globally.
In the USA, Democrats and Republicans still do not agree on the new fiscal stimulus program. The possible effect that such a program could have on the November elections makes both parties very cautious. Volumes would be between $ 2.2 and $ 1.5 trillion.
Oil experienced episodes of strong volatility, losing more than 7.50% in some sessions after it was learned that Saudi Arabia sold important packages of oil to large Asian clients with high discounts.
The ECB’s message fell short of market expectations, especially by not making explicit references to the strong rally in the EUR seen in previous weeks. The appearance of the Fed did not sit well either, as it was not clearly specified how the change in inflation targeting will be implemented. Likewise, they ruled out concrete measures to smooth the slope of the curve in its longest part, having a negative effect on the USD bond market.
The evolution of the pandemic in Europe and the United States is worrying. In the Old Continent, some capitals have announced partial closures and restrictions on mobility due to the growing number of infections.

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