COVID-19 Strikes Back or Just Speculation?

Recently there have been concerns over the second wave of covid-19 infections, though this was initially speculation, it has now been evidenced with figures released today.

Beijing reported a new outbreak of the covid-19 virus and have now closed its schools over concerns about new infections as China started testing all shipments of imported meat after a fresh outbreak was linked to a wholesale seafood and meat market in the capital. Consequently, the Beijing government has changed the Covid-19 emergency response level from 3 to 2.

Florida reported that new cases rose to the highest level since the pandemic began and Texas saw hospitalizations surge, two more signs that the coronavirus outbreak is worsening in some U.S. states. Cases have risen by 3.6% (vs the 7-day average of 2.5%). This has sparked fresh concerns over the second wave of COVID-19 cases.

There are a number of  US states such as Texas that are now testing their 7-day covid-19 case averages, with states such as Arizona, surpassing their averages completely.

Markets have mostly been influenced by a stronger dollar today, however if this becomes a new pattern, secondary wave risks are likely to see risk assets falling and the dollar pushing higher as a safe heaven.