Daily Market updates 11.09.2020
Friday 11.09.2020
Asian Session
As mega cap Us stocks falling, Asian shares indexes falling for fifth days in a row. Futures in Japan and Australia settled lower while Hong Kong shares were little changed. Geopolitical progresses also weighed on investor sentiment, due to a recent rise in tensions between the UK and EU. Shanghai composite index is down 0.21%, while Hong Kong’s Hang Seng index advanced higher by 0.42%. Japan’s index Nikkei225 added 0.35% and South Korea’s Kospi index dropped by 0.65%.
| Asian Stock | Closed |
| Nikkei | +0.88% |
| Hong Kong HSI | -0.64% |
| China Shanghai SSE | -0.61% |
| KOSPI – South Korea | +0.85% |
US Stocks
US equities fell yesterday and closed the day even lower after a volatile session, as the continuously upbeat mood from investors ended amid weak labor market data and a lack of progress on another fiscal stimulus. Nasdaq index is down7.27% so far for September. The fall also came from initial jobless claims report which was weaker than expected showing 0.884 million unemployment against 0.850 forecasted.
| U.S Stocks | Closed |
| DOW | -1.53% |
| S&P500 | -1.76% |
| NASDAQ | -1.99% |
Major Currencies
After yesterday’s ECB’s meeting euro gained very strong traction and appreciated by almost 120 pips against dollar before retreated. Lagarde’s comments on the recent euro strength provided an additional boost to the euro. Christine Lagarde said that Eurozone’s domestic demand had recorded a significant recovery from low levels. FX Strategists at UOB Group now believe EUR/USD has moved into a consolidative range within 1.1750-1.1920. On Pound/Dollar short positions should be below 1.2885 level with target at 1.2715, otherwise above 1.2885 further upside is seen at 1.293. Extremely oversold conditions aided pound to gain some traction today and UK GDP arrived at +6.6% MoM in June vs. +6.7% expected. Dollar/Yen remains in sideways and is expected to trade between 105.95 and 106.35 in the next weeks. Bids are noted at 106.10-00 with stops below 105.80 while offers are tipped at 106.25/30 with stops above 108.55.
Gold Market
Gold price in spot trading went down by 0.8% at $1,938.53 per ounce in early trading session, after reaching its best level since the beginning of September at $1,965.94 per ounce yesterday. Gold has added 0.4% for the current week. Additionally, gold on futures market fell by0.8% to settled at $1948 per ounce. Dollar bounced back after quick drop against euro yesterday and as dollar gets stronger gold will be more expensive for other foreign currencies. Gold prices have climbed 28% this year as governments and major central banks pumped massive stimulus into the economy and kept interest rates low.
Oil Market
Oil prices were lower in the afternoon of Asian trading hours, with international benchmark Brent crude futures down around 0.4% to $39.89 per barrel after declining around 2% yesterday, while US crude oil futures also slipped by 0.35% to $37.17 per barrel. WTI and Brent prices lost around 6.5% for the current week, as the hopes dim for a gradual recovery in fuel demand, amid concerns over a second wave of coronavirus outbreaks. U.S. crude inventories rose 2.0 million barrels, compared with forecasts for a 1.3 million-barrel decrease in a Reuters poll.
European Stocks
European equities closed down interim yesterday by 0.5% after EB’s announcement that kept interest rates unchanged as it was expected. The ECB noted that now awaits its GDP to contract 8% by this year, a moderate improvement on the 8.7% contraction that it had projected in June.
On the data front 11-09-2020
| Time (GMT+3) | Event | Impact |
| 03:00 am | EUR Eurogroup Meeting | Medium |
| 03:00 am | GBP Manufacturing Production (MoM) (Jul) | Medium |
| 09:00 am | EUR Harmonized Index of Consumer Prices (YoY) (Aug) | High |
| 11:50 am | EU ECB’s Schnabel speech | Medium |
| 15:30 pm | USD Consumer Price Index ex Food & Energy (MoM)(Aug) | High |
| 15:30 pm | USD Consumer Price Index ex Food & Energy (YoY)(Aug) | High |
