Investors Find Safety in the US Dollar
The US index rose from 96 lows on weaker equities, ending the session mixed. This came as parts of California fell back into lockdown.
Tensions arose after the US rejected China’s territorial claims in the South China Sea, which assisted the reversal.
The initial rally earlier in the day saw renewed hopes of a vaccine becoming available sooner than expected.
Traders Switch EU Recovery Fund Optimism with Dollars
The euro was buoyed by the proposed €750bn recovery fund in light of the ECB press conference later this week.
However, its approval remains under question as the frugal four persist with payback. Early sentiment shifted on the dollar’s U-turn.
UK Businesses Under Threat on Brexit Border Plan
The pound fell at a rapid pace in yesterday’s session over the proposed Brexit border plan.
Initial suggestions implied that the retail and manufacturing sector could face a 7-billion-pound red tape bill, pushing cable towards $1.25 levels.
Asian Markets Optimism Diminished by White House
In Asia, equities rose on China’s trade surplus of $46.2b, its first export growth since the pandemic.
However, the recent US-China quarreling over the South China Sea kept the gains capped. In addition, the yen’s strength over the US dollar suffered a negative effect.
US Equities Reverse on Rising Uncertainty
The surge in recent equity prices was weighed on by rising coronavirus cases and US-China tensions.
Both the S&P and Nasdaq closed the session bearish. The Dow, however, was boosted by Pfizer pharmaceuticals’ ‘fast track’ designation of their experimental coronavirus vaccines.
Gold Supported Above $1800, Will It Last?
Gold closed Monday positive above the round $1800 level. Growing concerns over possible lockdowns and US-Sino re-escalation could keep the yellow metal supported.
Positive antivirus headlines, however, will likely see appetite shifting.
Crude Oil Slides Down As OPEC+ Meeting Looms
Oil prices fell yesterday following an announcement that OPEC+ alliance members plan to boost oil production by 2 million bpd. The committee members are set to meet on Wednesday.