European stocks plunged alongside the S&P 500 at the beginning of Monday’s trading session, amid rising virus worries over the weekend. Most investors want to remain optimistic about the upside potential of stock markets but they are becoming increasingly sceptical about the next US stimulus package. In addition, recent record-breaking infection levels in many hotspots has led the EU to implement tougher restrictions (nationwide curfew in Spain, toughest Italian measures since May) which are widely expected to hurt businesses. Risk appetite has then significantly decreased today, with many investors seeking haven assets like bond markets and the US Dollar. Having said that, this week is likely to be a volatile one with a slew of major macro events. The Chinese Communist Party plenum runs until the 29th, both the ECB and BoJ have monetary meetings, US Q3 GDP figures are due on Thursday while intense Brexit negotiations continue to serve as a noisy backdrop. On the corporate front, reports from Coface, Bigben Interactive, Europcar Mobility, Twilio and Google are likely to increase market volatility during the day.
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