Tuesday 08.09.2020
Asian Session
Asian stocks were mixed today, after European equities rallied and U.S. markets were closed for the Labor Day national holiday. Investors are eyeing on vaccine’s developments and they give attention on how Wall Street will react after the holiday break. Japan’s benchmark Nikkei increased by 0.4%, while Australia’s index added 0.8%. South Korea’s Kospi index advanced higher by 0.5%, Hong Kong’s index went down by 0.5%, and Shanghai’s index slipped 0.35%.
| Asian Stock | Closed |
| Nikkei | -0.50% |
| Hong Kong HSI | -0.43% |
| China Shanghai SSE | -1.87% |
| KOSPI – South Korea | +0.47% |
US Stocks
In global trading SP500 on futures market erased their yesterday’s losses to trade near 0.6% higher. US technology shares remained more fragile, with Nasdaq on futures index being flat after the index lost more than 6% late last week. Investors were expecting for too long to be informed from Fed about new easing steps, and as the expectations decrease the US bond’s yields increases. Wall Street was set to remain closed for Labour Day after turning in its biggest weekly decline in more than two months.
| U.S Stocks | Closed |
| DOW | – |
| S&P500 | – |
| NASDAQ | – |
Major Currencies
Euro/Dollar it seems that is trying to recover following fifth day in a row of pullbacks and the price is sustained above 1.18 critical level for the time being. Preliminary forecast is that the initial support can be found near 1.175 ahead of ECB event for interest rate decision due on Thursday. Euro lost 15 pips yesterday against dollar. All eyes today turn to EU’s GDP which is forecasted to remain the same at minus 15%. According to FX Strategists at UOB Group, EUR/USD could drop to the 1.1750 in the next weeks. The risk of Brexit no trade-deal with the Eurozone took its toll on the pound and let pound debased. Cable could gradually return to the 1.3100 region in the next weeks, suggested FX Strategists at UOB Group. Japan’s Q2 Final GDP dropped 7.9% versus 7.8% preliminary forecast and 8.1% market consensus, however, did not significantly affect the Yen against dollar. Long positions should be above 106.1 and may extend to 106.55, otherwise below 106.1 cold trigger 105.8 price level.
Gold Market
Yesterday was another neutral day for gold, as dollar index rose against its rivals and as gold is priced in dollar, was more expensive to be purchased from investors holding other foreign currencies. Gold on futures market fell by 0.2% to $1931 per ounce today, as dollar continues getting stronger, but the precious metal drop may be limited as there exist growing fears over the global economic recovery. $1900 price level remains very strong support level for the time being.
Oil Market
Oil prices dropped to five-week lows after Saudi Arabia made its deepest monthly price cuts to supply for Asia in five months and as uncertainty over Chinese demand clouds the market’s recovery. WTI Crude Oil benchmark fell nearly 2% to $38.99 per barrel in electronic trading on the New York Mercantile Exchange, while Brent Crude the international standard, slipped 5 cents to $41.96 per barrel.
European Stocks
The European market bounced back and regained some traction today as investors focused on whether high US technology shares could rebound from their recent rout. The pan European Stoxx600 index has gained 1.67% taking the last closing. Yesterday, the UK100 rose 1.9%, while DAX30 gained 1.6% as industrial production figures showed a monthly increase for third month in a row. Market participants’ focus will now be on the European Central Bank’s policy decision on Thursday to see if policymakers add yet more stimulus.
On the data front 08-09-2020
| Time (GMT+3) | Event | Impact |
| 12:00 pm | EUR Gross Domestic Product (QoQ) (Q2) | High |
| 12:00 pm | EUR Gross Domestic Product (YoY) (Q2) | High |
| N/A | GBP Inflation Report Hearings | High |
