September 9: Overnight Market Wrap

September 9: Overnight Market Wrap

Key Points:

Nasdaq falls 4.11% dragging other indices lower

UK threatens to break international law over Brexit deal

AstraZeneca Covid vaccine phase 3 trial on hold due to adverse reaction

The stock market rout that started last week having paused over the US holiday re-emerged yesterday with all three major US indices hit hard. The Dow Jones and S&P500 well over 2% down but as to be expected the Nasdaq took the biggest hit down 4.11% and now considered to be in ‘correction’ territory. Tesla lost over 21% on the day. The USD benefitted as markets focussed back on China/US, China/Australia tensions, Brexit and further new Covid cases across Europe and the US. Oil fell back to close below $37 as demand is showing signs of waning adding to the strain on the loonie with USD/CAD back at 1.3250 from 1.30 last week. AUD tried a quick spike on the European open from 0.7280 to 0.7310 but was met with a wave of selling that has seen it test 0.7192 so far. Cable was the worst performer as once again the UK government seem intent in completely destroying the economy by reneging on the Brexit deal signed in December. After a number of gaffes relating to Covid earlier in the year, news out recently that there are plans to introduce a night curfew and limit gatherings to a maximum of 6 people are likely to weigh on any economic growth and the path for GBP going forward is bleak. News that the Oxford/AstraZeneca trials are to be put on hold has also given risk assets a kick. Gold plunged from 1940 to 1906 with USD strength but became a risk holding asset and turned back north to retest 1940 before closing at 1929 down $4 on the day. Chinese CPI is due out today unlikely to stir markets with all eyes on Asia reaction to the overnight sell off in the US. Tonight the BoC will announce their rate decision with expectation that they will leave things as they are as recent data has been promising.

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