- Analytics
- Market Overview
Donald Trump postponed talks on aid package for the American economy - 7.10.2020
Todays’ Market Summary
- On Tuesday, the US dollar index rose slightly amid a noticeable decline in the stock market.
- On Tuesday, US stock indices dropped due to the US President’s refusal to release financial aid to the economy until the 3 November elections.
- World oil prices continued to rise on Tuesday.
- Precious metals lost in price on Tuesday amid the strengthening of the US dollar.
Top daily news
US President Donald Trump decided to postpone negotiations with Democrats on the allocation of aid to the American economy and return to this issue after the presidential elections on November 3.At that point, the stock market collapsed and the dollar strengthened.Later, Trump added that the bailout program was not canceled and this reassured investors.The total change in quotations of various assets turned out to be minimal.
Forex news
Currency Pair | Change |
EUR/USD | +0.22% |
GBP/USD | +0.07% |
USD/JPY | +0.45% |
On Tuesday, the US dollar index rose slightly amid a noticeable decline in the stock market. US President Donald Trump unexpectedly announced that negotiations over financial assistance to the American economy should be postponed until the presidential elections on November 3. Meanwhile, Fed Chairman Jerome Powell said yesterday that monetary stimulus is necessary and investors expected it to start soon. Let us recall that the Democrats earlier offered a $2.4 trillion economic assistance package. The weak growth of the dollar, with the elimination of additional emmision for the allocation of these funds, may have been due to negative US foreign trade statistics for August. The trade deficit was the highest since 2007.
Stock Market news
Indices | Change |
S&P 500 | -1.4% |
DJIA | -1.34% |
Nasdaq 100 | -1.57% |
Nikkei 225 | -0.05% |
Hang Seng (HSI) | +1.09% |
On Tuesday, US stock indices dropped due to the US President’s refusal to release financial aid to the economy until the 3 November elections. Consumer sector shares (-2.1%) led the loses. An additional negative factor for them was the outlined increase in the number of coronavirus patients. To date, 210,000 people in the United States have died from this disease. This is more than the annual number of victims of common flu (from 22,000 to 64,000). According to Reuters/Ipsos polls, 52% would vote for Democratic candidate Joe Biden and 40% for Republican Donald Trump. Biden stated that more funds should be allocated to the unemployed and Covid-19 Americans.This morning, futures on America’s stock indices rose markedly, as Trump specified that if he won the presidential election, he would approve a large program of economic aid. In the meantime, he proposed to Congress to provide funds to support airlines, small businesses and low-income Americans. Today, the proceedings of the September Federal Reserve Meeting (FOMC Minutes) will be published in the United States.
Commodity Market news
Commodities | Change |
Brent Oil | -1.74% |
WTI Crude Oil | -2.21% |
Gold Market News
Metals | Change |
XAU/USD | -0.9% |
Precious metals lost in price on Tuesday amid the strengthening of the US dollar.The decline in palladium quotes was minimal.Gold dropped below the psychological level of $1,900 an ounce.