Global markets 1% lower on California’s lockdown
Head of Investment Research
Market Brief, Tuesday, 14th of July, 2020
US markets ended lower on Monday, erasing earlier gains after California closed all indoor activities following a surge in COVID-19 cases. Yet, the Nasdaq index opened the session with 2% in profits, making fresh all-time highs, before closing down 2% led by losses in Tesla and Amazon.
Asian markets fell 2% on Tuesday morning, following the overnight selloff on Wall Street, coupled with fresh tensions between US and China for the legal status of the South China Sea.
The WTI crude oil price fell 2% on Monday, breaking below $40 per barrel, on concerns that the newest reopening rollbacks in California could limit the recovery in fuel demand in the US.
Gold slipped below the key level of $1,800 per ounce while Silver dropped below $19 per ounce on Tuesday morning, due to a stronger US dollar and profit-taking actions.
The US dollar was stronger across the board this morning, regaining back its safe-haven status in response to the rising coronavirus cases, the fresh lockdown measures, the stock market losses, and the geopolitical tensions.
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