COVID-19 Update from BofA - Aug 10

[dan_s]

Note from Bank of America Equity Research received this morning.

We would pay close attention to the U.S. Covid-19 situation, which we believe is showing clear signs of improvement and it appears that is not reflected in the prices for risk assets. The U.S. experienced recent outbreaks in four states – AZ, CA, FL and TX - starting probably in late May during the Memorial Day weekend. That predictably led to increasing hospitalizations a few weeks later. However, the number of U.S. people hospitalized due to Covid -19 peaked around July 23rd and has since declined by about 11%. That means new infections likely peaked several weeks prior to that and that the outbreaks are fading rapidly. We continue to hold the view that the fading U.S. Covid -19 situation will boost confidence.