Time is Running Out For Stimulus Decision
The US Index was losing grip from the start of the week as it closed 0.18% lower yesterday towards 93.
Weakness in the US dollar across the board was evident as the economy looks to hopes of a new round of stimulus talks.
The target of a further $1tn injection from the government is growing more unlikely every day. This comes as the legislative calendar is running out of days before members of Congress return home ahead of November’s election.
The index will try to steer clear of the recent yearly lows as we look ahead to today’s industrial and manufacturing production figures.
Euro Closes In On 1.19
The euro close 0.24% higher on Monday as it closes in on the 1.19 handle.
European industrial production grew by 4.1% in July as the bloc’s economic recovery continued.
However, with recent reports of COVID-19 infections on the rise, will the eurozone’s recovery derail?
Ministers Approve First Phase of Brexit Withdrawal Bill
The pound closed 0.54% higher yesterday as the UK shrugged off Brexit woes.
The controversial internal market bill cleared its first hurdle in the House of Commons as MPs voted in favor of the proposal.
The amendment on the bill is designed to enable goods and services to flow freely across England, Scotland, Wales, and Northern Ireland.
This came as the European Commission considers legal action against the UK as they prepare for a messy end to Britain’s departure from the EU.
Equities Look For Another Rally
US indices rose across the board on Monday, clawing back from the S&P′s worst week since June, and the Nasdaq’s worst week since March.
Oracle’s price rose by 8% helping the gains on the S&P as recent news indicates that the firm has won the bidding war to become TikTok’s technology partner.
Apple’s product launch this week led to a gain of 3% as the indices look for further progression.
Risk Appetite Looks for $2K
Gold ended yesterday’s session 0.79% higher as it closed above $1955.
The recent ascension on the gold could halt as we will likely see risk appetite shifting should further positive vaccination news come to light.
However, recent reports of progressive infection cases could spur the yellow metal back to $2,000.
Oil Slips on Bleaker Demand
WTI ended flat on Monday as it closed just above the $37 handle.
The resurgence in COVID-19 cases in many countries fueled concerns over a slower pick-up in global fuel demand.
We now await today’s API stock change for indications of further decent for oil.