September 24: Market Overnight Wrap

September 24: Market Overnight Wrap

Key Points:

US stocks rout, Nasdaq down over 3%

USD strength continues, DXY closes above trendline

Gold drops to 6 week low

Risk aversion returned during the US session after taking a break on Tuesday. The Nasdaq fell over 3%, the S&P500 over 2% and the DJ just under 2% as markets grappled with the realisation that the Fed is not about to add further stimulus and the government are nowhere near resolving the fiscal stimulus package. CNN reporting that Congress is likely to leave this week until after the election. The day had started as Tuesday finished with all indices opening higher but the nervousness crept back in and the selloff gathered pace. Gold spent most of the Asian session hovering either side of 1900 but started heading lower on the European open touching 1973 before a strong $25 bounce, sellers re-emerged and the pair fell to 1855, the lowest for 6 weeks. As with Gold the USD strength impacted the commodity currencies with AUD and NZD hit hardest, in comparison CAD is lagging in its weakness. USD/JPY was a strong performer pushing up from 104.80 to test 105.50 as dollar buying continued throughout the day. Surprisingly GBP and EUR closed weaker but relatively calm in comparison to other pairs, whereas in EM we saw a bloodbath and USD/TRY reach a new all-time high.  The DXY now at 94.50 has firmly broken a trendline to the upside and next resistance would be around 96.00. Political noise centres around the US Supreme Court and Trump’s refusal to accept any negative news over more than 200,000 virus deaths. NZ’s trade balance has just been released in line and later we will get the BOJ minutes as the highlight of the upcoming Asian session, with all Asian indices expected to open in the red. German IFO and weekly US jobless claims will provide the economic data excitement but all eyes will be on the US stock markets and if there’s a further continuation of the current sell off.

Trade the global markets with a broker that has integrity, honesty and transparency at its core

This website is owned and operated by the Ox Securities group of companies, which include:
Ox Securities Pty Ltd registered address Level 37, 1 Macquarie Place, Sydney NSW 2000 Australia. AFSL 438402 ACN 163 551 602
Ox Securities Limited (SV) registered address Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St Vincent and the Grenadines
Risk Warning: The information contained on this website is general in nature and does not constitute advice or a recommendation to act upon the information or an offer. The information on this website does not take into account your personal objectives, circumstances, financial situations or needs. You are strongly recommended to seek independent professional advice before opening an account with us and/or acquiring our services/products. Ox Securities Limited (SV) do not accept applications from residents of the United States of America and Australia
Before you decide whether or not to invest any products referred to on this website, being over the counter (OTC) derivatives, it is important for you to read and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS), and Terms and Conditions (T&C), and ensure that you fully understand the risks involved. Fees, charges and commissions apply. OTC derivatives, including margin foreign exchange contracts and contract for differences, are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone. You may incur losses that are substantially greater than your initial investment. You do not own, or have any rights to, the underlying assets which the OTC derivative is referring to. You should only trade with money you can afford to lose. There are also risks associated with online trading including, but not limited to, hardware and/or software failures, and disruptions to communication systems and internet connectivity.

Copyright © OxSecurities 2020. All rights reserved