Market Update

This week served as a stark reminder of the lingering shadow of COVID-19, with Europe seemingly on the brink of reimposing stringent measures and lockdowns due to a surge in infections.
While the week started off on a steady note, global equity markets inevitably faced a downturn in the subsequent days.
Without downplaying the severity of this spike in cases, it's worth noting that it led to a dip in oil prices. The rationale being, potential lockdowns could curb economic activities, thereby reducing oil demand. This decline in oil prices might, in turn, help alleviate some of the current inflationary stresses.
Moreover, the potential economic slowdown prompted by COVID-19 constraints, especially as we approach the crucial Christmas sales season, underscores the importance of central banks maintaining low interest rates.
As we turn our gaze to the upcoming week, the economic calendar seems relatively light. Key points of interest include PMI data from the US, UK, and Eurozone; US durable goods orders; and the minutes from the Fed's monetary meeting on 3 November 2021.