Archives of “September 28, 2020” day

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European indices closed sharply higher on the day

  
Analysis, Global Indices

German DAX rises over by 3.2%

The European indices are close for the day and the provisional closes are showing sharply higher levels for each of the major indices:

  • German DAX, +3.2%
  • France’s CAC, +2.5%
  • UK’s FTSE 100, +1.8%
  • Spain’s Ibex, +2.4%
  • Italy’s FTSE MIB, +2.4%
In other markets as London/European traders look to exit:
  • spot gold is trading up $10.40 or 0.56% $1872.08
  • spot silver is up $0.44 or 1.97% at $23.35
  • WTI crude oil futures are trading up $0.11 or 0.27% at $40 and 36%
in the US stock market, major indices continue to move to the upside with the Dow industrial average leading the way:
  • S&P index up 51.38 points or 1.56% at 3349.82
  • NASDAQ index up 150 points or 1.38% at 11064
  • Dow industrial average up 3 475 points or 1.75% at 27648.60

Chinese foreign ministry repeats opposition to US ‘bullying’ over TikTok

  
  Analysis

The saga continues

The latest development in this space is that a judge in Washington has granted a preliminary injunction to temporarily block Trump’s order banning Apple and Google from offering TikTok downloads on their respective app stores.
However, the Global Times reports that the ruling doesn’t make any difference and that China will do all it can to prevent TikTok from falling into the hands of the US.
In the bigger picture, this relates to the battle between both countries which could end up in a worst-case scenario of a large-scale decoupling over the next decade.

 

US China

Dollar index to hit 90 or 100 first?

  
Analysis, Forex

DXY at 94.35

I came across a piece on Bloomberg’s Market Live blog making a case for the Dollar Index to hit 90, before 100. Here is the rationale:
1. The recent Dollar strength has been fuelled by US election uncertainties.
2. The rising COVID-19 cases in Europe have been a key part of the EURUSD weakness. Technically the EURUSD is being pushed back down into a large downtrend from 2008.
3. Despite crowded eur longs and USD shorts being a bit cleaner there still remains election risks.
4. The sum conclusion is that once the election tensions fade then the EURUSD will be driven by the fact that the Fed’s stimulus is greater than the ECB’s. Therefore, DXY to move to 90 before 100.
Points 1 and 2  are really two sides of the same coin. EURUSD weakness = DXY strength and vice versa due to their tight negative correlation. US elections are close and tense. The ‘sell everything’ feel has definitely been here with heavy global stock selling.
DXY at 94.35

Nikkei 225 closes higher by 1.32% at 23,511.62

  
Analysis, Global Indices

Asian equities off to a good start to the new week

Nikkei 28-09

Stocks in Asia are following the more positive mood from Wall Street from the end of last week, with higher US futures also helping to keep the optimism flowing today.

The Nikkei is closing near the highs, with the Hang Seng seen up by 0.9% while the Shanghai Composite is up by 0.1%. HSBC stocks in particular are outperforming, after reports of Ping An Insurance adding to their stake in the financial firm.
Both Nasdaq and S&P 500 futures are up by ~0.6% so that is also helping with the mood.
In the currencies space, the dollar is mildly weaker to start the day but it is still early to draw any real conclusions from the relatively minor movement so far.

Here is the US election debate timetable (and the bad news)

  
Analysis, Politics

OK, lets get the bad news out of the way – the debates will be held during the US evening, which is the Asian time zone.

😀
The schedule (all dates US time … they’ll be a day later in Asai)
  • Trump vs. Biden on Tuesday September 29 (begins at 9pm NY time, so that is 0100 GMT on Wednesday Sep 30)
  • Pence vs Harris (the VP vs challenger) on October 7
  • Trump v Biden October 15
  • Trump v Biden October 22
OK, lets get the bad news out of the way - the debates will be held during the US evening, which is the Asian time zone.
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