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US election: The good, the bad, and the ugly for markets – Special Report

Posted on September 30, 2020 at 2:06 pm GMT

With almost one month to go until the presidential election, investors are increasingly focused on how the outcome will impact financial markets. The short answer is that there is no automatic rule for how the dollar and equity markets will react to a Trump or Biden win – it all depends on whether the victor will also have full control of Congress or not. This piece will examine how markets might respond to a Democratic sweep, a Republican one, a [..]

Daily Market Comment – US presidential debate rattles equity markets

Posted on September 30, 2020 at 8:07 am GMT

Stocks edge lower after debate as Trump keeps door open to contest result Otherwise, not much to move the needle in this race Focus now turns back to stimulus talks that will resume today Euro advances, but can it keep going if euro area stays in deflation? Presidential debate leaves markets wanting Uncertainty about the election outcome seems to have intensified after the first debate between Donald Trump and Joe Biden, which yielded no clear winner as both men landed [..]

Daily Market Comment – Dollar retreats as stocks roar higher, Trump faces Biden

Posted on September 29, 2020 at 8:33 am GMT

Democrats unveil new $2.2 trillion stimulus compromise Equities celebrate, dollar falls as traders dump defensive plays Sterling lifted by a combination of risk appetite and Brexit hopes First US presidential debate is the main event later today Markets laser-focused on new stimulus package Optimism that a stimulus deal can still be reached on this side of the US election has returned to global markets, after the Democrats watered down their demands a little further yesterday, sparking a relief rally in [..]

Daily Market Comment – Equities storm back on fiscal hopes

Posted on September 28, 2020 at 8:38 am GMT

Risk appetite improves on hopes that US fiscal deal isn’t entirely dead Dollar climbs despite rebound in stock markets – European worries? Too early to say turbulence is over, but broader path seems bright For now, all eyes are on the Trump-Biden debate and Brexit talks Markets feel the blues in September Global markets have been thrown into turmoil in recent weeks, as a perfect storm of bad news provided a reality check for investors. America is running out of [..]

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Technical analysis – US 500 index turns red after five months; may heal some injuries in near-term

Posted on September 28, 2020 at 8:02 am GMT

The US 500 index (cash) has been printing a series of lower lows and lower highs since the start of September in the four-hour chart, reaching a two-month low of 3,209 last week. Although the index has secured a negative monthly close for the first time in five months, it could push for some recovery in the near-term given the improvement in the MACD and the RSI, which have both bottomed twice near their recent lows before bouncing up. The price [..]

Week Ahead – Markets feel the blues ahead of US employment report

Posted on September 25, 2020 at 11:52 am GMT

A perfect storm of bad news has thrown global markets into disarray. America is running out of stimulus, fears of a constitutional crisis after the election are running rampant, Europe is wrestling with a second virus wave, and central banks have moved from ‘all in’ to ‘check’ in poker terms. Considering all this, the upcoming US employment report could be a make-or-break event for the dollar and equities. In the political arena, Brexit talks will resume in Brussels while Trump [..]

Is the stock market in a bubble? – Special Report

Posted on September 18, 2020 at 11:57 am GMT

The US stock market has staged a meteoric comeback, raising concerns about whether we are experiencing an asset bubble in the middle of a recession. While there is clearly a sharp disconnect between markets and economic reality, there are good reasons why. In short, central banks have killed bonds, and stocks are the only game in town. Even if this is a bubble, it could keep going for a long time in a world where the virus may be defeated [..]

Daily Market Comment – BoE clips pound’s wings, equities brace for turbulence

Posted on September 18, 2020 at 8:12 am GMT

Sterling capsizes after BoE opens door to negative rates Fed disappointment torments equities, but dollar doesn’t get the memo Market turmoil might continue today amid major option expiries Crude oil stages heroic comeback on supply hopes Bank of England does another policy U-turn The BoE injected another dose of volatility into British assets yesterday after it announced that it is studying the implementation of negative interest rates, just six weeks after it downplayed this policy as ineffective. It seems that [..]

Daily Market Comment – Investors heartbroken after Fed fires a blank, BoE next

Posted on September 17, 2020 at 8:23 am GMT

Fed commits to inflation overshooting regime, but delivers no new measures Dollar grinds higher, stocks in agony as investors expected heavier artillery Yet, this is probably not a game changer in the bigger picture Attention now turns to the Bank of England decision today Fed takes a small step back, markets throw a tantrum It was another eventful FOMC meeting. The Fed officially embraced its new inflation overshoot regime, albeit not unanimously. The vote was 8-2, with Kaplan and Kashkari [..]

Daily Market Comment – Markets hold their breath ahead of Fed decision

Posted on September 16, 2020 at 8:03 am GMT

Spotlight falls on the Fed today: will it deliver new measures to boost inflation? Bank of Japan meets a few hours later, not much is expected Otherwise muted moves across markets as investors await FOMC direction Fed: Justifying the paradigm shift The main event today will be the FOMC decision at 18:00 GMT, which will be followed by the regular press conference by Chairman Powell half an hour later. The Fed is certain to use this meeting as a public [..]

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