Monday 07.09.2020
Asian Session
Asian equities began the week mixed, with Hong Kong’s index falling by nearly 0.6% today as SMIC(Semiconductor Manufacturing International Corporation) shares listed plunged around 20%, as Trump may impose restrictions on SMIC exports. Meanwhile a data came out showed China’s dollar-denominated exports rose by 9.5 within a year against minus 2.1% on imports. Mixed market mood caused by investors reaction over increased tech tensions between US-China.
| Asian Stock | Closed |
| Nikkei | -1.11% |
| Hong Kong HSI | -1.25% |
| China Shanghai SSE | -0.87% |
| KOSPI – South Korea | -1.48% |
US Stocks
US stocks market started reversing from highs after hitting pre-pandemic levels and many of investors were wondering what is happening with stock market as America is facing significant recession. Bullish investors see the promise of lower interest rates for years to come and further injections of money by the Fed. Dow Jones closed by almost 1% lower on Friday, while SP500 lost 0.81% following previous days loss of 3.51% and Nasdaq closed lower by 1.27%.
| U.S Stocks | Closed |
| DOW | -0.98% |
| S&P500 | -0.81% |
| NASDAQ | -1.27% |
Major Currencies
It’s the fourth day in a row that Euro/Dollar is traded neutrally after the dollar appreciated due to Fed policy. Euro/Dollar the pair is looming within a price range of 1.18-1.184 and keeps its range trade intact below mid-1.1800 despite today’s German Industrial Production negative data as the report showed 1.2% against forecast of 4.7%. Dollar stabilize in the aftermath of NFP jobs report, amid holiday-thinned light trading. Pound/Dollar witnessed some intraday selling pressure during Friday amid concerns over no-deal Brexit, as UK Prime Minister Boris Johnson is expected to say today that UK and EU should move on in case no free trade deal agreed before mid of October. The eighth round of Brexit negotiations recommences this week. The pair is currently traded at 1.3226 and it is more likely anticipated that pound will fall further to 1.3165 and even lower, otherwise 1.33 remains strong resistance and 1.35 a psychological level. Yen is appreciating against dollar recent days after Fed dovish economic view, along with Abe’s (Japan’s Prime Minister) resignation and the pair is currently traded at 106.2. The Japanese currency was unable to benefit from another round of US-China tensions. If the pair remains above 106 may lead to 107 as next resistance level.
Gold Market
Spot gold was up 0.2% at $1,935.50 per ounce in early trading in the beginning of this week, trying to move beyond from a one-week low of $1,916.24 per ounce a level that reached on Friday. Gold on futures markets advanced even higher to $1943 per ounce after bad US data regarding quick economic recovery, along with hopes that lower interest rates would last longer. Interesting is that gold advanced by 28% higher, the greatest performance in the history.
Oil Market
Brent crude Oil was at $42.21 per barrel, lower by 1.1% after sliding to $41.51 which is the lowest level since late July, while WTI slipped by 1.3%, to $39.26 per barrel after earlier declining to $38.55. The drop in Oil prices mainly caused from Saudi Arabia’s deepest monthly price cuts for supply to Asia within 5 months, while optimism for oil demand decreased. Generally, despite OPEC supply cuts, oil surplus still exists.
European Stocks
European equities may rebound today after falling for two consecutive days last week, how there is uncertainty due to concerns over new coronavirus infections and economic recovery, despite positive data from US and China. The Pan-European index is currently traded 0.83% higher and closed by 1.13% negatively on Friday.
On the data front 07-09-2020
| Time (GMT+3) | Event | Impact |
| 05:00 am | CNY Trade Balance CNY(Aug) | High |
| 09:00 am | EUR Industrial Production s.a. (MoM)(Jul) | Medium |
| 09:00 am | EUR Industrial Production n.s.a. w.d.a. (YoY)(Jul) | Medium |
