At the moment, it looks like the more COVID-19 cases and deaths, the more stimulus will be announced, and the higher the stock market will go. Cyclical sectors will be wiped out during the winter months, but it seems like no one cares, and the tech sector is the biggest winner in this environment.
Earlier Friday, China’s Caixin Services PMI rose to 54.8 in September, remaining in positive territory for a fifth consecutive month. The August' reading was at 54.0, and analysts had expected a decline to 50.8.
Later in the day, traders will pay attention to the Canadian labor market data, which are due at 2:30 PM CET. The unemployment rate is expected to decline from 10.2% to 9.7%, and the net change in employment will most likely weaken further. The Canadian dollar will most likely be volatile after the release.
In commodities, gold and silver were up sharply, and both metals seem to be catching another wave of bullish momentum. The fundamentals are still bullish here - central banks printing billions out of thin air.