Most global stock
markets flashed in the red on Monday and Asian equities extended losses on
Tuesday due to coronavirus fears as full restriction measures could be reinstated
in Europe. As usual, the aviation and hospitality sectors would take the bigger
hit as reports talked that the UK PM would encourage Britons to return to work
The Fed Chair
assured on Monday that the Central bank remained committed to doing “all that
it takes” to ensure that the recovery will be as strong as possible. Powell will
testify before the US congress for three days where he is expected to repeat
what he said in the latest Fed policy meeting of keeping on low-interest rates,
tolerating higher inflation levels, and targeting better employment rates. Additionally,
Powell may repeat his invitation to politicians to break the current deadlock
and help the Us economy with another round of fiscal stimulus.
The US dollar
benefited from weaker risk-on sentiment due to the coronavirus developments and
the delay in US fiscal stimulus. The safe-haven currency rallied on Monday to a
six-week high against a basket of currencies.
The oil price
slipped on Tuesday as the tropical storm in Mexico Gulf lost strength and
concerns increase over fuel demand due to the persisting surge of coronavirus
cases worldwide. Brent
oilUS Crudehas lost 1.3% of its value.
The Gold price fell on Monday to a multi-week
low at $1,882 due to the US dollar rally and closed below $1,921 changing the precious
metal outlook to negative. XAU/USD may continue falling towards $1,859o/z.
will be on the Eurozone consumer confidence number for September and the US home
sales for July and they expect Fed member Evan’s speech at 6:00 PM (UAE time)
then at 6:30 PM markets will tune in the Powell testimony before the US congress.