Financial markets overview: this week, global markets are in turmoil, and U.S. and U.S. stock markets have staged a major counterattack after a wave of panic selling. The U.S. dollar index fell sharply after rising, falling to a three-week low on Friday. Spot gold tumbled as much as $40 on Tuesday, then continued to rally and surged more than $30 on Friday, approaching the 1930 mark, with bulls achieving a major break. The analysis pointed out that behind the big reversal in market sentiment, it seems only because of THE US President Trump! Combined with the resumption of stimulus talks, expectations of stimulus continued to grow after President Donald Trump abruptly halted talks on the measure on Tuesday and then appeared to “back off,” offering to sign checks and a bailout bill for airlines. By Friday, President Trump’s latest statement appeared to be a u-turn, saying he wanted a bigger stimulus package than Democrats have proposed so far, setting off a more aggressive move in financial markets.
In addition, in terms of the global epidemic, the number of new confirmed cases in Europe surged. On The 8th, the number of new confirmed cases reached a new high of 100,000, and Spain announced the mandatory lockdown in Madrid. US President Donald Trump’s presidential campaign will be held On October 10, aides said, after doctors at the White House announced the end of his treatment for the new coronavant disease. But the situation in the US remains grim. The us is in its worst week of coVID-19 in months, with a resurgence of the disease in the North-East and an unprecedented death toll in the Midwest. The only vice presidential debate in the 2020 U.S. presidential election has been canceled, the Commission on Presidential Debates has announced. Volatility is bound to increase as the election approaches.
The Bloomberg spot DOLLAR index.DXY fell 0.7% to 1162.56, its lowest in more than three weeks, its biggest drop in six weeks and its biggest two-week drop in four months. Analysts believe that behind the dollar’s decline, because the RESUMPTION of negotiations on fiscal stimulus measures in the United States, intensified the dollar selling pressure. The euro rose as high as 1.1830; Sterling fought back on Friday, rising as high as 1.3048, up more than 100 points. Chinese markets resumed trading on Friday, with the onshore yuan surging more than 1,000 points to the 6.70 mark…
Commodity markets: Spot gold surged and tumbled, falling as much as $40 on Tuesday before hitting back Wednesday, Thursday and Friday, with a rally above $30 at $1930.38 an ounce and closing at $1929.75. Spot silver also surged and tumbled, losing 6 percent to $23 on Tuesday before rising more than 5 percent on Friday to close at $25.133 an ounce. Td Securities analyst Bart Melek wrote in a note that news about stimulus policies continues to affect the gold market, with either party likely to strike a big fiscal policy deal right away, which should help the precious metal. Crude oil ended lower on Friday, but both American and Brent rose nearly 9 percent this week, the first gain in three weeks and brent’s biggest weekly gain since June. Rising expectations of fiscal stimulus in the US and a strike at a Norwegian oil field have supported prices.
U.S. and European stocks: All three major U.S. stock indexes are up this week, with the S&P 500 and Nasdaq up for the third straight week and the Dow up for the second straight week. The Dow Jones industrial Average gained 3.3 percent, its biggest weekly gain since the week of August 7. The S&P 500 gained 3.8 percent and the NASDAQ rose 4.6 percent, both Posting their biggest weekly gains since the week ending July 2. The Russell 2000 index gained more than 6 percent this week, its biggest weekly gain in more than three months. In Europe, Germany’s DAX 30 index rose 2.8 percent on Friday, its highest close since Sept. 18, its second straight week of gains. France’s CAC40 index rose 2.5% this week. Britain’s FTSE 100 index rose 1.9% this week. Italy’s FTSE MIB index rose 2.8% this week.
Market Outlook for next week
The global market is set to see heavy economic data such as US CPI and retail sales, brexit “final negotiations” and two reports from the oil market, while the OPEC+ Joint Technical Committee (JTC) is scheduled to meet next Thursday.
In addition to the economic data, next week promises to be a big one for the Brexit deal. An EU summit will be held on October 15-16, ahead of the October 15 deadline set by Prime Minister Boris Johnson for a deal to leave the EU. Britain and the European Union have agreed to seek a “mini-deal” if talks fail next week, according to The Times.
Britain and the EU have agreed to strike “mini-deals” in areas of common interest such as air and road transport, even if talks on a broader trade deal break down next week.
Britain’s Chief Brexit negotiator David Frost and his EU counterpart Michel Barnier have agreed to remain in contact even if the October 15 talks fail to produce a broader trade deal, The Times of London reported.
According to the report, the EU and THE UK will try to reach a “mini-deal” in November based on this consensus, to make up for the failure to reach an agreement before the end of the “Brexit” transition period on December 31.
On Wall Street, Apple inc. held an event Wednesday that most analysts believe will be used to unveil its new 5G-capable iPhone 12. In addition, the global epidemic situation, the situation between China and the United States, the border conflicts between China and India, and the situation across the Taiwan Straits can still be the focus of the market.
About global outbreak, comprehensive FX168 previously reported, the European new confirmed cases, multiple regions implement tougher blockade measures, announced the Spanish capital Madrid enforcement blockade, and October 8th day confirmed more than 100000 new cases of Europe, a record high, wary of the epidemic situation deteriorates, affect the market confidence in the economic recovery.