Equities
The US stock markets rallied on positive ADP numbers, the data
came in stronger than expected however, the coronavirus surge weighed heavily
on some sectors like aviation and entertainment as some US airlines prepare to
layoff tens of thousands of workers unless they get federal aid.
The US fiscal stimulus deal remained in the negotiations stage
as Democrats reduced their demands from $3.4trillion to $2.2 trillion. However,
the US administration offer was below the $2.0 trillion thresholds as presented
a new “generous” offer of $1.5 trillion with $20 billion extensions in aid for
the airline's industry. The ball now is in Democrat’s court.
Europe has stepped up measures to combat the Coronavirus
resurgence. The Czech Republic issued a 30-day state emergency, and the UK PM
asked people to work from home and said he would not hesitate to impose new
restrictions.
Change % | |
+0.7% | |
+1.2% | |
+0.9% | |
-0.5% | |
-0.5% | |
-0.5% | |
-0.4% |
Currencies
The US Dollar index retreated further on
Thursday eyeing a test of the inverted head and shoulders neckline located at
93.47. A daily close below that level could send the price even lower towards
92.73.
The EUR/USD
bearish momentum has slowed down and rallied eyeing a test of 1.1909. That
said, a daily close below 1.1713 could send the price even lower to re-test
1.1621. A better than expected non-farm payrolls data on Friday may send the
pair even higher.
GBP/USD benefited from a
weaker US dollar and rallied above 1.2773 hinting to test 1.3048. Nonetheless,
markets pay attention to the EU/UK negotiation’s updates, as the hard Brexit
risk is not reflected in the Sterling pound price. The UK has offered some
concessions in the fisheries track and now it is up to the EU to decide if they
are enough or not.
Commodities
Rising numbers of Coronavirus kept oil price fundamentals are weak
due to worries of lower fuel demand. The Brent oil remained
below $42.50 and indicated a possible downward move towards $39.60, while the US Crude bears
could press towards $38.37.
The gold steadied above $1,861
hinting towards $1,921. However, a close below $1,861 could send the precious
metal towards $1,796.
Looking Ahead
Eyes will be on the US PCE index numbers with the initial
jobless claims at 4:30 PM (UAE time). At 5:30 PM comes the Canadian
manufacturing PMI final read for September, and at 5:45 and 6:00 PM the US
Markit and ISM manufacturing PMI data will be released. By 7:00 PM the Fed
member Williams speaks.