New York City is under curfew for the first time since 1943 amid escalating riots over police brutality. But market participants looked away from violent protests and pandemic fears across the United States to signs of relief measures and economic recovery, with stocks ending higher across the board and risk sentiment continuing to improve. The dollar continued to come under pressure after six straight days of losses on Wednesday, with non-U.S. currencies rallying and spot gold plunging to $1,720 in the short term as markets focused on the “small farm” data.
Protests and riots in the United States have entered their seventh day in a potentially dangerous trump administration
The death of Floyd, an African American, during a police operation led to violent protests across the United States. The incident sparked public anger over police brutality and lent support to the Black Lives Matter national movement.
Anti-racial protests and violence across the United States entered their seventh day on June 1. Although many of the protesters were demonstrating peacefully, there have been some arrests, looting and damage to police vehicles and buildings.
New York governor Andrew cuomo announced a curfew from 11 p.m. to 5 p.m. in New York City Tuesday, raising the police force to 8,000 from 4,000 the previous night.
DE Blasio said Tuesday that the incident on Monday night was unacceptable and that most of the demonstrators were peaceful, with “opportunists” among them. The curfew in New York will be changed from 20am to 5am from Tuesday night in an attempt to reduce the chaos.
The curfew, which runs from 23 a.m. to 5 a.m., is reported to be the first in The city since 1943. During the curfew, except for essential workers, people are not allowed to go out.
The curfew did little to stop the chaos of the past few days in New York, as protests turned violent and businesses were invaded in midtown Manhattan and on fifth avenue. New York police said more than 700 people were arrested and several other officers were injured overnight.
US President Donald trump on Tuesday called violent protests “an act of domestic terror” in his first speech to the nation in response to mounting demonstrations, and said he would use the military in states where unrest and violence cannot be quelled.
Analysis points out, in the face of the protests, trump threats suppression with troops unceasingly, but the more the more scared the demonstrations hot, business has always supported the republicans and the trump, but this time a number of blue-chip company boss has issued a statement, referring to the black by unfair treatment for a long time, should face the problem, their position parted ways with the trump, if lose business support, trump’s political demise will be discounted.
It’s worth noting that a CNN report shows that more than 40 U.S. public opinion polls show Trump trailing his rival Joe Biden. And Mr Trump is clearly behind.
Mr Biden leads Mr Trump in most national polls; Political polls give him an average lead of nearly six points.
More than 55 percent of Americans disapprove of Trump’s handling of the protests after Freud’s death, with 40 percent saying they “strongly” disapprove, according to the agency.
The right-leaning Fox News poll also showed former vice President Biden with 49 percent of registered voters nationwide, a 10-point lead over Trump with 39 percent. In addition to Biden, polls show Trump trailing by as much as four Democrats. The poll was conducted June 9 solstice June 12 and has a margin of error of plus or minus 3 percentage points.
Global market carnival! The dollar and gold plunged
Despite violent protests across the US and fears of a pandemic, market participants have turned their attention to the measures and signs of economic recovery.
As a result, U.S. stocks ended higher on Tuesday. The Dow Jones Industrial Average closed up 267.63 points, or 1.05 percent; The STANDARD & Poor’s 500 index gained 25.09 points, or 0.82 percent. The Nasdaq closed up 56.33 points, or 0.59 percent.
The Nasdaq, s&p 500 and Dow have been edging toward record highs in recent weeks and are now about 2%, 9% and 13% below their record close, respectively.
“The good times for risk markets continue,” Said Mazen Issa, senior currency strategist at TD Securities, in a note. While strong, it is likely to continue as the current rally spreads beyond the US.”
“Technical factors are driving the market higher,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “The market is not paying attention to the potential problems the protests could pose for the local economy.”
But Cardillo added: “If violent protests continue, they could exacerbate the impact of coVID-19 on businesses. Many shops will close; There will be curfews; People will not be able to shop and that will further damage the economy.”
The dollar weakened sharply as U.S. politics caught fire, and risk sentiment continued to rise. The U.S. dollar index fell for six straight days.
As the dollar continued to fall, non-US currencies rebounded, with the Australian and New Zealand dollars leading the way. The Australian dollar rose 0.6 percent to around 0.6935, while the New Zealand dollar extended gains to 0.5 percent to break through the 0.64 mark.
Traders recently pointed to trend funds selling the U.S. dollar against the Australian dollar, the U.S. dollar against the New Zealand dollar and the U.S. dollar against the British pound.
While the dollar continued to fall, spot gold failed to rebound as a rebound in risk sentiment hit the metal, which briefly fell to $1,720 early Wednesday.
“There’s continued optimism that the economy is restarting, and the stock market has continued to rise,” said David Meger, director of metals trading at High Ridge Futures. In that context, it’s easy to see why gold might be a bit fragile.”
However, analysts said the overall trend was positive, with gold up more than 18 per cent after hitting a near four-month low of $1,450.98 an ounce in March, largely on economic uncertainty caused by the outbreak and a series of stimulus measures from central Banks around the world.
In the current session, investors will focus on the so-called “small non-farm” U.S. ADP employment data, due at 20:15 Beijing time on Wednesday, which is now expected to shed 9 million jobs.
If the data comes in worse than expected, then the dollar’s decline could intensify and the 97 level could be tested, which could provide temporary support for gold.
In addition, market participants are now waiting for the Labor Department’s key nonfarm payrolls report on Friday to get a clearer picture of the extent of the damage the forced shutdown has done to the economy. The report is expected to show the unemployment rate has surged to a record 19.7 percent.