-
Trump tests positive for coronavirus
-
Positive stimulus talk in the United States
-
Stock markets and oil slump
Markets got caught off guard today with news that US President Donald Trump and First Lady Melania Trump tested positive for coronavirus. Equity markets dropped together with commodities while Japanese yen and US dollar outperformed the FX market. Later media reports suggested that Donald Trump is having mild symptoms and is continuing to perform his duties from his residence. Other high profile US politicians got tested for the virus and it is known that Pence, Mnuchin and Biden tested negative.
NFP report for September, the final to be released before US elections, turned out to be a disappointment. Employment gain was smaller than expected, what pointed to slowing recovery on the US labour market. Factory orders data for August also came below expectations. European CPI data showed core inflation slowing to a record low of 0.2% YoY.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appIndices received a boost on reports that Democrats and Republicans are finalizing a stimulus bill and on speculation that a separate support package for airlines may be proposed.Nevertheless, all three major indices from Wall Street are still trading below yesterday's closing price. Interestingly, small-cap Russell 2000 is trading higher.
Gold is declining together with other precious metals and trades around $1,900 per ounce. WTI drops 3% to $37.50 per barrel. Industrial metals trade higher with copper gaining 3.5%.
US500 tries to recover from a slump on positive stimulus news. Index tests resistance at 3,360 pts. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.