US coronavirus cases rise to over 3 million: Are global markets finally seeing the Grim Reaper?
|- US coronavirus cases rose to over 3 million total on Tuesday
- Texas new cases up by more than 10,000 in just one day.
- The highest number of infections Los Angeles County has reported in a single day.
- Global markets rattled, down day for Wall Street.
In a Reuters tally, the US coronavirus cases rose to over a 3 million total on Tuesday, the largest outbreak in the world.
There is little coincidence that we are starting to see a shift in positioning across financial markets and related asset classes.
On Wall Street, investors are sensing a highly treacherous path ahead. Profit-taking has ensued following a sensational comeback in US stocks this year to date.
Japan's benchmark Nikkei average opened down 0.59% at 22,481.61 on Wednesday, while the broader Topix.TOPX shed 0.41 percent at 1,565.26.
Australia's ASX 200 Index was down 0.234% at 5,999.40 points in early trade.
Texas new cases up by more than 10,000 in just one day
A standout headline pertaining to the US cases came from Texas with the state's new cases up by more than 10,000 in just one day.
This was a new record increase for the state which also had 60 deaths recorded, another new record high for a day.
The death toll is now above 2,700 with the hospitalisations hitting a new record high at 9,286 (9th day in a row of record hospitalisations), which is up 588 from the previous day.
Also, coronavirus conditions in Los Angeles County continued to deteriorate on Tuesday.
Officials released numbers that marked another new record for daily new cases and the infection rate continued to surge.
46 more coronavirus-related deaths and 4,015 additional cases Tuesday, making for the highest number of infections the county has reported in a single day.
Also, the news that the US pulled the trigger on the WHo and officially announced that it will withdraw from it is going to be damaging to the prospects of a centralised battle against the virus. After all, the US is the WHO's top donor.
Is the optimism overdone?
The news of the spread is rattling markets – stocks down, gold up.
We have seen a rally that has defied all of the odds in the face of the coronavirus and asset price bubbles left right and centre.
The question everyone is asking now is whether the euphoria-driven rally could be coming to a head?
The pandemic is worsening and lockdown could be back on the agenda.
What the markets could now be fainting, unlike the GFC's liquidity crisis, is an insolvency crisis as business stop spending and people start hoarding.
More on that here: Wall Street Close: Investors start to doubt the economic recovery playbook
Vaccine updates
However, observers will be well versed by now to expect volatility and know that it may only take a positive vaccine headline to encourage more buying on Wall Street from investors who are always on the lookout for a discount.
Trump worried COVID-19 cases could jeopardize nascent recovery
Also, least we forget, the elections are at stake for the US President Donald Trump.
The news comes amid headlines which are reporting on how the White House has been promoted by the COVID-19 cases to renew a push to get the Senate GOP to compromise with the Democrats for the purpose of reaching a deal on a new stimulus in July.
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