- U.S. stocks snap a three-day winning streak to finish softer
- Fed’s Powell calls for an extension of the Unemployment Insurance program
- USD, Oil and Gold all slightly weaker, currencies ranging
Bias: Risk off
U.S. stocks snapped a three-day winning streak overnight, as traders focused on the increasing numbers of Corona Virus cases in several states in the U.S. Markets were also concerned after U.S. Fed President Powell called for the extension of unemployment insurance past the end of next month deadline and amid the rising number of Covid cases in Beijing.
The currency market was quiet overnight, with players still sidelined awaiting fresh incentives. The USD/JPY hit a two-day low, while news that the Brazilian Central Bank cut rates 75bpos had little impact on trading. U.S. Housing Starts were slightly weaker than expected but were shrugged off.
Oil and gold prices both fell in line with the weaker equity markets.
Another quiet day in Asia is scheduled today with a lack of fresh trading incentives from offshore markets leading locals to sit and data watch. On the calendar today is Australian Unemployment data, Chinese Trade and US Initial Claims and Philly Fed. The BoE will also announce on rates, with no change expected.