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Trump tests positive for coronavirus
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Positive stimulus talk in the United States
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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.
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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
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