Investors are starting to price in the possibilities of additional lockdowns and restrictions, which will further hinge economic growth.
France became the latest European country to tighten its restrictions on social gatherings late on Wednesday, against a backdrop of rising infections and admissions to hospitals. The UK and Belgium had already announced new restrictions in the previous 48 hours.
Moreover, German IFO surveys came below expectations, suggesting that managers are getting cautious as winter months are approaching.
From other news, the greenback was regaining strength as safe-haven flows are once again benefiting the safest currency in the world. The EURUSD pair was dropping toward the 1.16 level, the USDJPY pair pushed back above the 105 threshold, and cable was down testing the 1.27 support.
As the USD strengthens, metals are plunging. Gold was down another 0.8% today, seen near 1,850 USD, and silver plummeted 3% during the EU session.
Later in the day, US jobless claims are due, along with new home sales and Powell's testimony.