Growing Coronavirus cases continue to weigh on market sentiments while investors await a bunch of policy makers speeches this week.
Equities
Asian stock
markets retreated slightly as investors monitor any progress in a US fiscal
stimulus package and keep a close eye on the growing numbers of COVID-9 cases
in Europe. The equity market benefited from low US interest rates and markets
will try to seek more clarity about the Fedchairman testimony before the US congress this week.
On the other
hand, the US president Trump approved on TikTok deal with Oracle and allowed
the app’s operations to continue in the US. This deal may calm down the
US-China trade war and this may continue until we know the identity of the new
president of the US after the November 3rd elections.
|
Stock Market |
Change % |
|
-1.0% |
|
|
-0.7% |
|
|
-1.2% |
|
|
-0.3% |
|
|
-0.8% |
|
|
-0.7% |
|
|
-1.4% |
Currencies
The US Dollar index continued on Monday its sideways move
after failing on Friday to break above the Sep 9 high. Therefore, the index may
continue falling towards 92.34 and any close below 91.78 would change the
technical outlook to negative.
The EUR/USD technical outlook remains neutral while the pair trades in
a narrow range of 1.1713 – 1.1909.
GBP/USD
slipped last week after the hints made by the Bank of England of taking the UK
interest rates to the negative zone. However, Sterling recovered some losses
after the Ursula Von der Leyen the European commissioner stated that an EU/UK
trade deal was still possible. From a technical point of view, a close below
1.2773 would change Cable’s outlook to negative.
Commodities
The oil price
benefited from reports of halting productions in the Gulf of Mexico due to a
tropical storm however, the Coronavirus growing cases worldwide continue to
weigh on the crude price. The US Crude has rallied on Monday by 0.4%, while Brent oil remained flat. From a technical
perspective, Brent may rally towards $45.15 while above $42.50.
The Gold price has kept trading without
any clear trend. The yellow metal failed on multiple occasions to fall to the
lower $1,921- $1,859 trading zone therefore, the price may rally towards
$2,015.
Looking
Ahead
Markets will tune
in the ECB president Lagarde’s speech at 4:45 PM (UAE time) then the Fed
Brainard’s speech at 8:00 PM.
Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.
Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).
Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.
Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.
