News & Analysis

Overnight on Wall Street: Tuesday 06 October 2020

October 6, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Risk appetite improved on Monday on the back of President Trump’s health, higher expectations of a coronavirus relief package from the US and positive Brexit headlines. Global stocks were trading mostly in positive territory overnight.


Source: Bloomberg

The US share market was well bid lifted by the improvement in the US President’s health after some conflicting news over the weekend and the higher possibility of the President agreeing to a stimulus deal given that he contracted the virus:

  • The Dow Jones Industrial Average added 466 points or 1.7% to 28,149.
  • S&P 500 rose by 60 points or 1.8% to 3,409.
  • Nasdaq Composite ended 257 points or 2.3% higher to 11,332.


Currency Markets 

In the FX space, safe-haven currencies traded on that backfoot as risk sentiment improves. To the exception of the Yen, major G10 currencies were stronger than the US dollar.


Source: Bloomberg

Commodity-related currencies posted modest gains compared to the Euro and the Pound. The Euro was also boosted by upbeat Retails Sales and PMI figures:

  • In August 2020, a month marked by some relaxation of COVID-19 containment measures in many Member States, volume of retail trade rose by 4.4%, compared with July 2020.
  • In August 2020 compared with August 2019, the retail sales index increased by 3.7% in the euro area.

The EUR/USD pair rose higher and flirted with the 1.800 level.


Source: GO MT4

The Aussie dollar remained in familiar levels ahead of the RBA monetary policy decision and the Australian Budget.


Source: GO MT4

Commodities

Crude oil prices also recovered some ground on Monday. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $39.28 and $41.29respectively. 

Against the backdrop of uncertain demand in the energy markets, traders will likely await for the weekly reports for fresh trading impetus. The most relevant event for the energy markets this week will be the release of the Short Term Energy Outlook by the EIA today.

Gold

The precious metal caught a breather on a less-stronger US dollar and hopes of a new US stimulus package. As of writing, the pair is currently trading around $1,912 level.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • NZIER Business Confidence and GDT Price Index (New Zealand)
  • AiG Performance of Construction Index, Imports, Exports, Trade Balance, RBA Interest Rate Decision & Statement and Budget Release (Australia)
  • BRC Like-For-Like Retail Sales
  • Factory Orders (Germany)
  • Trade Balance and Fed’s Chair Powell Speech (US)
Wednesday, 07 October 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 0 0.065 0.033 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 0


Disclaimer:  The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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