Daily Market Updates 22.09.2020
Tuesday 22.09.2020
Asian Session
Shares of airlines in Asia-Pacific plunged in today’s trading session, amid concerns over coronavirus resurgence globally. China Eastern Airlines stocks that listed on Chinese Hang Seng index dropped by 1.98%. EU countries may impose more restrictions on public life along with UK according to Reuters. HSBC and Standard Chartered banks shares plunged after reports of alleged suspicious transfers for about 2 trillion dollars.
| Asian Stock | Closed |
| Nikkei | – |
| Hong Kong HSI | -2.065 |
| China Shanghai SSE | -0.66% |
| KOSPI – South Korea | -0.94% |
US Stocks
It’s been observed a huge sell-off is US stock market during yesterday, however today there exist more positive sentiment with US stocks in futures market rising slightly higher. One of the worst losers was Tesla which plunged by 6% after CEO Elon Musk said in a tweet that the electric car-maker’s “Battery Day” event would not reach “serious high-volume production” until 2022. Concerns about resurfacing of a new wave of coronavirus led the stock market to fall
| U.S Stocks | Closed |
| DOW | -1.84% |
| S&P500 | -1.16% |
| NASDAQ | -0.13% |
Major Currencies
Euro/Dollar yesterday dropped by almost 100 pips as dollar got stronger against is major rivals. EUR/USD risks a further pullback to the 1.1695 level in the next weeks, suggested FX Strategists at UOB Group. Euro still declining today due partly to a selloff in European stocks. Pound/Dollar seems that remains under selling pressure as dollar strengthen across the board. The pair is trading near to the 1.2780 daily low and a break lower from the 1.2690 support level is set to trigger a deeper fall to the 1.2250/00 zone, according to Commerzbank. Cable is now expected to extend the correction lower to the 1.2730 region in the next weeks, in opinion of FX Strategists at UOB Group. According to FX Strategists at UOB Group, the bearish note in USD/JPY is expected to lose impetus if 105.20 is regained in the next weeks. Yen and dollar are safe heaven assets and that was a reason we did not observe big dollar appreciation against yen in yesterday trading
Gold Market
Spot gold went up by 0.1% at $1,914.28 per ounce be early trading session today, after plunged by more than 3%, breaking a critical support support zone of $1900 and reached the level of $1,882.70 per ounce, its lowest level since August 12 on Monday. U.S. gold futures gained 0.5% to $1,919.70 today. Dollar appreciated yesterday against its major counters with dollar index adding more gains and a firmer dollar makes bullion more expensive for holders of other currencies. The fresh lockdown around EU, along with low interest rates underpinned gold, however the bullion today is traded neutrally. More likely next major support is at $1800.
Oil Market
Brent crude futures rose 14 cents, or 0.3%, to $41.58 per barrel by early trading. The WTI crude oil on futures market is due to expiry today and rose by 0.5% to settled to $39.5 per barrel. The November contract increased by 13 cents or 0.3%. The possible new coronavirus restrictions that may be imposed globally will be harmful once again for fuel demand. Traders will be watching out for the American Petroleum Institute’s data on U.S. oil inventories due later today.
European Stocks
European stock market it is expected to open higher today , recovering from yesterday’s losses amid coronavirus concerns along with bank allegations. At yesterday’s closing the Pan-European index Stoxx600closed down by 3.2%, with banks shares declining by 5.7% and travel stocks plunged by 5.2%.
On the data front 22-09-2020
| Time (GMT+3) | Event | Impact |
| 10:30 am | GBP BoE’s Governor Bailey speech | High |
| 15:00 pm | EUR ECB’s Panetta speech | Medium |
| 17:00 pm | USD Fed’s Chair Powell testifies | High |
