Further Pressure Mounts on Trump
The end of Friday’s session saw the US Index close below 96.
Heightened speculation remains that more lockdowns are likely as fresh COVID-19 cases broke to new records of 64,000 on Sunday. Texas, Florida, and California have continued to experience a consistent uptick in virus cases.
The US President is facing continuous pressure regarding funding for testing equipment as laboratories struggle to keep up with increasing demand. With unemployment lagging, uncertainty may linger.
EU Talks Still at a Stalemate
EURUSD reached a 4-month high last week thanks to optimism surrounding the EU’s recovery fund.
After three days of debates, however, the bickering over the plan continues.
The “frugal four” still believe that the grant proposals are too large at €450bn, offering €350bn instead. Germany, France, and Italy are resisting, which is weighing on sentiment.
Brexit Negotiations Return Amid Uncertainty
The pound ended 80 pips lower against the greenback last week as the UK continued to deliver weaker than expected data on services, construction, and GDP.
With concerns over Brexit reflecting on the market, the EUR climbed above €0.91.
The outcome of EU-UK talks between key Brexit negotiators this week will be key to the pound’s performance.
Positive Starts for Asia and Oceania on Improving Data
Chinese stocks rallied 2.6% on the open this morning as China maintained its benchmark lending rate for the third straight month.
The Australian and New Zealand dollars retained their support over the US counterpart as they both reap the benefits of an organized containment of COVID-19.
Both traded slightly higher this morning on improved risk sentiment, as Kiwi PMIs expanded for the first time post-COVID.
Equities Slightly Dejected Amidst Corporate Earnings
US stocks opened negative this morning, as slight gains witnessed on Friday were canceled out.
With Netflix and Goldman Sachs underperforming, the Nasdaq and the Dow Jones remain in negative territory for now.
Sentiment will hang on earnings versus coronavirus headlines.
Gold Holds Firm Near All-Time Highs
After a slight drop on Friday’s trading session, gold rose and consolidated over the $1810 level.
Dips are continuing, however, increased uncertainty with US-Sino tensions are providing continuous support for the yellow metal.
WTI Stands Firm Above $40 For Now
Oil continues to maintain its price over $40. Recent data from the EIA and promises that OPEC+ will extend output cuts boosted oil markets.
However, fears of a second wave of COVID-19 cases are keeping a cap on oil prices.
