Tuesday 21.09.2020
Asian Session
Asian equities began the week lower after US equities fell for third consecutive week. Many technology stocks on SP500 benchmark declined and investors worried that stocks may become to expensive. Benchmarks in Shanghai, Hong Kong and Sydney retreated. Japanese markets were closed for a holiday. The Shanghai Composite Index lost 0.2%, while the Hang Seng in Hong Kong HIS shed by 0.6%. South Korea’s index Kospi was slightly up by 0.1%.
| Asian Stock | Closed |
| Nikkei | +0.18% |
| Hong Kong HSI | +0.47% |
| China Shanghai SSE | +2.07% |
| KOSPI – South Korea | +0.54% |
US Stocks
The last week US equities market had its longest weekly losing streak in about a year as investors were expecting new stimulus package from the Fed. US equities on futures market changed little bid from lows and tried to bounce back. Dow Jones Industrial Average futures was traded 17 points lower, or 0.1%, while S&P 500 futures remained below the flatline and Nasdaq index jumped by 0.2%.
| U.S Stocks | Closed |
| DOW | -0.47% |
| S&P500 | -1.12% |
| NASDAQ | -1.07% |
Major Currencies
Euro/Dollar remained within a trading range as it was expected, and investors now are eyeing Fed speech and EU PMI reports later on the week. New coronavirus cased still weigh on investors sentiment and the pair is currently traded at 1.186. FX Strategists at UOB Group noted the likeliness of EUR/USD to slip back to the 1.1750 area appears to have lost momentum. Pound/Dollar remained below 1.30 psychological level after witnessed some selling pressure during Friday as investors are pessimistic about Brexit and coronavirus new cases overshadowed investors confidence. In opinion of FX Strategists at UOB Group, Cable could now move within the 1.2800-1.3100 range in the next weeks. Dollar/Yen found strong support near 104.5 price level which are 2018&2019 lows. A break below the 104.28 will indicate a sell signal. Yen appreciated last week against dollar as Japan elected a new Prime Minister, in combination with that Fed extend zero-rate prediction until end of 2023. The negative view in the pair may become is seen modest if we observe a break above 105.2 according to FX Strategist at UOB Group.
Gold Market
As the markets still not be trustworthy and there is a possibility of new coronavirus wave banks are making huge profits from gold as investors flood into a market. Spot gold rose 0.2% to $1,953.37 per ounce by early trading session, while US gold futures slightly fell by 0.1% lower. Investors keep an eye for Fed policy-makers speech within this week and if the Fed aims to provide new stimulus package. Gold has surged about 29% this year as governments and central banks worldwide released unprecedented global stimulus measures.
Oil Market
In energy markets, benchmark U.S. crude CL.1 has gained 11 cents to $41.22 per barrel in electronic trading on the New York Mercantile Exchange, while Brent crude, advanced even higher by 9 cents to $43.24 per barrel. The rise caused from a tropical storm which halt some oil production, however new virus infections create weaker demand.
European Stocks
European equities were expected to begin this week lower as allegations surrounding bank dealings and rising coronavirus infections weigh on market sentiment around the world. Investors will be oversight bank shares as there are reviews that allegedly moved massive sums of suspicious funds. In Friday Pan European index Stoxx600 closed lower by 0.66%.
On the data front 21-09-2020
| Time (GMT+3) | Event | Impact |
| 04:30 am | CNY PBoC Interest Rate Decision | High |
| 15:30 pm | USD Chicago Fed National Activity Index (Aug) | Medium |
| 17:00 pm | USD Fed’s Chair Powell speech | High |
