Equities
Global stock
markets returned to flash in the red due to serious concerns over the global
economic recovery. The released PMI data on Wednesday showed weakness in the services sector in Germany and the UK caused by the recent surge in coronavirus
cases, while the Fed vice president Mr. Clarida stated that the US remains in a
deep hole of unemployment and reiterated on the importance of the more fiscal
stimulus.
ByteDance has
taken another step to end the TikTok drama in the US, as applied for a tech
export license in China. However, it is not clear what kind of deal it will be
or if there would be any deal amid to conflictive statements from both sides.
The deal needs approval from both China and the United States, while Chinese
state media doubted that the deal could be approved as it was based on
extortion.
Change % | |
-2.6% | |
-2.4% | |
-3.3% | |
-0.1% | |
-1.5% | |
-0.8% | |
-1.3% |
Currencies
Risk related
currency assets retreated against the US Dollar as the rising numbers of the
Coronavirus in Europe and the UK sparked worries about a new severe lockdown in
Europe and the UK.
The US Dollar index has risen on Thursday to a nine-week
high at 94.54 and may continue its rally towards 95.50 after breaking the neckline of an inverted head and shoulders pattern on Tuesday.
The EUR/USD broke below the 1.1700 threshold for the first time
since early August, as a result, the pair’s outlook changed to negative and
therefore could fall towards 1.1500 levels.
GBP/USD retreated further on the back of a strong US dollar. The pair tested on
Wednesday its lowest levels in two-months and rallied after as some bears
seemed to cover. Investors continue monitoring the EU/UK negotiations as the
Oct 15 deadline is nearing.
Commodities
The
coronavirus concerns weighed on the oil price as some countries in Europe could
be heading to a new total lockdown and this would affect the global oil demand.
Brent
oil failed on Wednesday to close above 42.50 hence the price could point
lower for a test of 39.60, while the US Crude may fall towards 38.37.
This week the Gold price changed its technical
outlook to negative and fell on Thursday to a nine-week low at $1,848. Bears
could press towards $1,796.
Looking Ahead
Markets eyes
will be on the US initial jobless claims at 4:30 PM (UAE time), then at 6:00 PM
markets will listen to the Bank of England’s speech and the US Fed chair
testimony before the US Congress then the Fed members Evans and Williams speak
at 9:00 PM and 10:00 PM respectively.