Posted To: Mortgage Rate Watch
Winter is coming, both literally and figuratively. While the fallout remains to be seen, financial markets are already reacting. In the literal sense, colder ambient temperatures are generally correlated with increased covid case counts. The following chart shows per capita covid hot spots juxtaposed with a low temp map from 2 weeks prior. Market participants aren’t necessarily epidemiologists, but the correlation is simple enough for the average trader to act upon. In this sense, the market is pricing in the metaphorical winter of a slower global economy due to covid-related lockdowns (or other measures that inhibit the free flow of business). The latest example arrived at the end of the week as Austria announced new lockdown measures and vaccine mandates. Here’s how the market reacted: Traders…(read more)
Source: Mortgage News Daily
