Wednesday 26.08.2020
Asian Session
Asian equities were set for a choppy trading session in early Wednesday, along with mixed Wall Street stock market, while markets cheered indications of evolvements in US-Sino trade negotiations, however remained cautious about the broader economic outlook and global recovery. Hong Kong’s index closed the day before -0.26%, while Japan’s index closed higher by 1.36%. South Korea’s Kospi index closed by 1.38% and Shanghai index closed by 0.13%
| Asian Stock | Closed |
| Nikkei | +1.36% |
| Hong Kong HSI | -0.26% |
| China Shanghai SSE | +0.13% |
| KOSPI – South Korea | +1.38% |
US Stocks
US equities on communication services and health care increased their values, however yesterday US stocks benchmarks closed negatively, after a report showed that consumer confidence weakened momentarily. The Dow Jones Industrial index closed slightly lower yesterday by 0.16%, while SP500 closed the day even higher by 0.36% and Nasdaq Composite index closed by 0.76%.
| U.S Stocks | Closed |
| DOW | -0.16% |
| S&P500 | +0.36% |
| NASDAQ | +0.76% |
Major Currencies
Although the deterioration in Eurozone due to new infections in virus cased, PMIs, the German IFO increased for the fourth month in a row, aiding to drive Euro/Dollar back above 1.18. Now traders are expecting Thursday’s Fed Powell important speech about US monetary policy. Investors are waiting to see if Powell signals a shift in the Fed’s inflation target to an average, which would allow inflation to rise more quickly than in the past. Pound/Dollar is traded below 1.3150 as the dollar gains ground, and deadlocked Brexit talks weigh on the pound. Chief EU Negotiator Barnier reportedly told euro states to be “cold-blooded” with Britain. Dollar/Yen key support is at 106.00/105.90 today and the pair is currently traded at 106.33 and targeting even higher at 106.7with selling opportunity be at 107.15. Yesterday Dollar appreciated against Yen due to optimism between US-China trade deal and reached the price level of 106.5 before retreat back to 106.2
Gold Market
Gold is currently traded around $1919 per ounce of the third week’s in a row low and further breakdown is on the cards. Investors who bought lately the yellow metal may be the first who will leave their positions. In case the price drop lower than $1915 could trigger a bearish momentum and may start progressing a 6-month low cycle target.
Oil Market
Oil and gasoline futures were set at their highest level yesterday closing since early March, as storms forced the closure of more than 80% of offshore oil output in the Gulf Mexico and led to refinery cuts. West Texas Intermediate crude for October delivery CL.1, rose by 73 cents, or 1.7%, to settle at $43.35 per barrel on the New York Mercantile Exchange, while October Brent crude BRNV20, 0.20%, the global benchmark, also gained 73 cents, or 1.6%, to $45.86 per barrel.
European Stocks
The economic calendar in the UK and Europe is very quiet today. Today’s European market open is expected to be a positive one, however given the choppiness seen so far this week we are not expecting to see significant moves one way or the other. Yesterday Stox600 index closed lower by 0.30%.
On the data front 26-08-2020
| Time (GMT+3) | Event | Impact |
| 14:30 pm | EUR ECB’s Schnabel speech | Medium |
| 15:30 pm | USD Durable Goods Orders (Jul) | High |
