Market Brief, Thursday, 10th of September, 2020
The major US indices rebounded off their recent losses into a strong session which saw the Nasdaq up by around 3% and the S&P up 1.77% as big tech saw most of the gains. In Asia, equities are generally higher with the ASX and Nikkei up 0.1 and 0.6% taking over from a positive US session. In China, the Hang Seng is down by 0.1% while the Shanghai Comp is up by 0.3%.
September’s ECB meeting is in focus today especially after recent comments from top ECB officials regarding the EURUSD exchange rate. The recent appreciation in the exchange rate is of concern as it will adversely hit exports even though officials have re-iterated that the exchange rate is not the ECB’s mandate.
The EU is reportedly considering legal action against the UK for its attempt to override parts of the Withdrawal Agreement, while Brussels reportedly accused UK PM Johnson of deliberately wrecking trade negotiations and pushing Britain towards a no-deal.
The dollar index traded lower following its recent surge as improved risk tone and the ongoing pessimism regarding stimulus relief took its toll on the greenback. EURUSD benefitted form this with the pair trading over the 1.18 handle.
WTI and Brent are trading higher even though yesterday's inventory data showed a build of 3million rather than the expected draw of 1.3million. They are currently trading around 38 and 41 dollars per barrel respectively.
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