Daily Market Updates 30.09.2020
Wednesday 30.09.2020
Asian Session
China’s CSI 300 index of Shanghai and Shenzhen-listed stocks retreated after added some gains previously and fall 0.1% while Hong Kong’s Hang Seng rose 0.8% after the index gave back some of its earlier strength. Chinese manufacturing activity for September rose according to a report came out. Investors are not willing to take on risky trades.
| Asian Stock | Closed |
| Nikkei | +0.12% |
| Hong Kong HSI | -0.15% |
| China Shanghai SSE | +0.21% |
| KOSPI – South Korea | +0.75% |
US Stocks
US equities market slipped after the US election debate on late Tuesday as talks on further stimulus package ended for the day and they are planning to resume by today. Dow Jones Industrial Average futures were down 275 points. S&P 500 futures and Nasdaq 100 futures were also both in negative territory. Investors have concerns, as Baiden precedes polls and in case win the elections there exist a fear that this could lead to higher corporate taxes and regulations.
| U.S Stocks | Closed |
| DOW | -0.48% |
| S&P500 | -0.48% |
| NASDAQ | -0.37% |
Major Currencies
Euro/Dollar managed to rise above 1.17 on Tuesday and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the pair is executing a return to point of break out. The up move should fade at the 1.18 downtrend and a fall to the 1.1495 is likely, however the FX Strategists at UOB Group believe that the pair will test the upper end of the 1.1630/1.1830 range in the next weeks. Pound/Dollar remains in the red, down -0.3% to 1.2825, while Wednesday’s 4-hour chart is showing a mixed picture. Resistance is seen at 1.2870 whereas support awaits the cable at 1.2805, Yohay Elam, an analyst at FXStreet, reports. Cable is now forecasted to navigate within the 1.2750-1.3000 range in the next weeks, suggested FX Strategists at UOB Group. The Dollar/Yen pair remained stable in the neutral territory today, just above mid-105.00, as the near-term bounce is approaching the three-month downtrend at 105.90. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the rebound to fail at the mentioned 105.90 mark.
Gold Market
Spot gold fell 0.5% to $1,889.66 per ounce by early trading session after the first US debate, after hitting a one-week high of $1,899.12 earlier in the session. Spot gold was on track to post it worst monthly fall since November 2016, dropping 4% so far this month. US gold futures were down 0.4% at $1,895.40. Investors are tracking the progress of a new U.S. coronavirus relief bill after U.S. House Speaker Nancy Pelosi said she hoped for a deal this week
Oil Market
Brent crude dropped 48 cents, or 1.2%, to $40.55 per barrel by early trading session, while West Texas Intermediate crude oil fell 33 cents, or 0.8%, to $38.96 per barrel The benchmarks fell more than 3% yesterday as global virus infections cases passed 1 million, having doubled within three months. Oil prices extended their losses today on worries that rising coronavirus cases would cause further restrictions on activity and curb demand for fuel.
European Stocks
European equities are following the fall on Us stock market after a chaotic US presidential debate, while further signs of China’s economic recovery failed to provide some impetus to the market sentiment. Stoxx600 index closed lower yesterday by 0.52%.
On the data front 30-09-2020
| Time (GMT+3) | Event | Impact |
| 04:00 am | CNY Non-Manufacturing PMI (Sep) | High |
| 04:00 am | CNY NBS Manufacturing PMI (Sep) | High |
| 09:00 am | GBP Gross Domestic Product (QoQ) (Q2) | High |
| 09:00 am | EUR Retail Sales (YoY)(Aug) | High |
| 10:20 am | EUR ECB’s President Lagarde speech | High |
| 15:15 pm | USD ADP Employment Change (Sep) | High |
| 15:30 pm | USD Gross Domestic Product Annualized (Q2) | High |
