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The initial estimate of eurozone GDP growth in Q3 far surpassed expectations.But renewed COVID-19 restrictions point to a sizeable GDP decline in Q4.Whether the eurozone can avoid another technical recession is uncertain at this point.Either way, the road back to pre-pandemic output levels will be a long one.

The dollar is consolidating yesterday's losses.Equities are lower, and benchmark yields are little changed.The S&P 500 is trading a little lower following yesterday's 0.2% decline.Gold rose almost 1% yesterday, the most in a couple of weeks, on the back of the weaker dollar.WTI for December delivery slumped 4% yesterday and slipped below the $40-mark and straddled today.

The dollar is falling against most of the world's currencies today.Sterling and the Norwegian krone are leading the majors higher.The Chinese yuan extended its gains and is now at the best level since July 2018.In Asia, most of the large markets gained, but China, India, and a handful of smaller bourses were sold.Europe's Dow Jones Stoxx 600 is off for the third day and the sixth session in the past seven.

China's economy expanded by 2.7% in Q3, a little below the Bloomberg survey median forecast of 3.3%, and Q2 growth was revised to 11.7% from 11.5%.The UK has been struck by a resurging virus, the lack of progress with EU trade talks, and the pre-weekend downgrade by Moody's.In an otherwise light calendar today, six Fed officials speak. These include Chair Powell at an IMF-sponsored discussion of cross-border payments and Vice-Chair Clarida on the economic outlook.Oil prices have recovered from their April lows but have been moving broadly sideways for three-four months.

The firm close in US equities failed to carry over much to Asia-Pacific trading earlier today. Only Hong Kong and Indian equities gained.The tragic resurgence of the virus is likely to resolve the apparent debate at the ECB.Three successive gap-higher openings are a sign of an over-extended market.

U.S. equity markets have been in a holding pattern since early September, but we’ll likely see a relief rally following the election.Yield curve control will make the environment very hard to price and the safety valve for the inflation play will be precious metals.Europe’s approach to stimulus has delayed insolvency for many companies and continues supporting jobs that may never be coming back, which is having a zombification effect.

Positive economic data from Europe and the U.S.Powell calls for more U.S. fiscal stimulus.Strong week for small cap U.S. cyclical stocks.

European equity markets are still struggling to overcome the effects of the pandemic.Europe's aerospace industry is facing unprecedented distress.Before COVID-19, Europeans hadn't embraced online shopping as much as American or Asian consumers.