News & Analysis

Overnight on Wall Street: Tuesday 29 September 2020

September 29, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Despite continued uncertainty, global equities rallied on Monday mostly led by financial shares. The end of month flows and portfolio rebalancing may have contributed to the upside momentum. European shares fared better than its US counterparts with gains between 1.5% to 3%. 

Wall Street ended in positive territory ahead of the first US Presidential Debate. Despite the risk-on sentiment seen on Monday, investors will likely remain cautious:

  • The Dow Jones Industrial Average added 410 points or 1.5% to 27,584.
  • S&P 500 rose by 53 points or 1.6% to 3,352.
  • Nasdaq Composite ended 204 points or 1.9% higher to 11,118.

Currency Markets

In the FX space, the momentum of the US dollar against its peers tamed down as risk appetite improves. The Pound emerged as the best performing currencies against the greenback lifted by positive headlines ahead of another round of the EU-UK negotiations. There seem to be more optimistic tones surrounding the desire to agree to a deal. The GBPUSD pair climbed to a high above the 1.29 level before retreating to 1.2830.


Source: GO MT4

Amid a muted economic calendar, the shared currency was driven by President Lagarde’s speech on euro-area economic and monetary affairs. The ECB’s President reiterated the “incomplete, uncertain and uneven” recovery in economic activity and the impact of “stronger euro” on inflation. The EURUSD pair retreated from daily high following the dovish comments.


Source: GO MT4

Commodities

Ahead of the weekly oil reports, crude oil prices are finding support on the better market mood. The demand outlook remains murky given the rising number of cases in Europe and the threats of further social distancing measures and travel restrictions. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $40.60 and $42.44 respectively. 

Against the backdrop of uncertain demand in the energy markets, traders will likely await for the weekly reports for fresh trading impetus. 

Gold

The precious metal caught a breather on a less-stronger US dollar and hopes that a new stimulus package is being prepared. As of writing, the pair is currently trading around $1,883 level.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Tokyo CPI and Consumer Price Index (Japan)
  • Consumer Confidence and Business Climate (Eurozone)
  • Harmonized Index of Consumer Prices (Germany)
  • S&P 500/Case Shiller Home Price Indices, Fed’s Williams speech and Consumer Confidence (US)
Wednesday, 30 September 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 0 0.122 0.089 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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