News & Analysis

Overnight on Wall Street: Thursday 10 September 2020

September 10, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Global stocks rebounded on Wednesday after a few days of heavy sell-off. Investors are keeping an eye on the volatility in the markets especially in the tech sector which was outperforming until the recent rout. Major European and US equity indices closed higher by 1% or more overnight.


Source: Bloomberg

The sell-off of the mega-cap tech stocks have dragged the Nasdaq in official correction territory on Tuesday, breaking down from the uptrend the index has been since March. Traders managed to halt the sell-off and pushed tech stocks higher.

Wall Street recovered some ground yesterday as investors saw tech as a buying opportunity:

  • The Dow Jones Industrial Average added 440 points or 1.6% to 27,501.
  • S&P 500 rose by 67 points or 2% to 3,399.
  • Nasdaq Composite added 294 points or 2.7% to 11,142.

Currency Markets

In the FX space, major currencies regained strength against the US dollar. Following the improvement in risk appetite on Wednesday, safe-haven currencies like the US dollar and Japanese Yen were trading lower.


Source: Bloomberg

The Antipodeans currencies were among the best performers while the shared currency and the British Pound lagged behind. Brexit continues to remain the primary driver of the local currency. The controversial Internal Market Bill published on Wednesday threatens to disrupt the EU negotiations. 

On the economic front, one notable event was the Bank of Canada Interest Rate Decision and Statement. As widely expected, the BoC maintained its target for the overnight rate at the effective lower bound of 0.25%. The Bank is also continuing its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds. The USDCAD pair came off from Tuesday’s highs to trade around the 1.31 level. 


Source: GO MT4

Commodities

Crude oil prices traded firmer yesterday lifted mostly by the improvement in risk sentiment. On the data front, API reported an increase in the weekly crude oil stock from previous -6.36M to 2.97M in September 4. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading firmer around $37.73 and $40.51 respectively.

Gold

Gold is trading within a range – the precious metal climbed to the upper side within the range on the back of the dollar weakness. As of writing, the XAUUSD pair has consolidated around $1,945.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Consumer Inflation Expectations (Australia)
  • NIESR GDP Estimate (UK)
  • ECB Interest & Deposit Rate Decision and ECB Monetary Policy Statement and Press Conference (Eurozone)
  • PPI, and Jobless Claims (US)
  • BoC’s Governor Macklem Speech (Canada)
Friday, 11 September 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.157 8.224 0.158 0.016 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0.944 0 0


Disclaimer:  The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

Next:
Previous:

Let's Get Started with GO Open a Live Account Try a Free Demo