By Deepta Bolaky
@DeeptaGOMarkets
The spotlight was on the US Presidential election day. After a rout in the stock market last week, global equities climbed higher in the last two days fueled by the election polls. European markets rallied on Tuesday and major equity benchmarks rose by more than 2% on Tuesday.
After the S&P500 posted the worst weekly loss since March pandemic-lows last week, the US stocks gained some upside momentum on the back of election polls and on the speculations that Congress will deliver the much-awaited stimulus package after the election.
In the FX space, major currencies were stronger against the US dollar as risk sentiment improves across the board. The US election will likely take centre stage until a clear winner is announced and markets are able to gauge whether the results will lead to a contested election.
It was a relatively muted day on the economic front. The Reserve Bank of Australia policy meeting stood out on Tuesday. As widely expected, the central bank cut interest rates to a historic low from 0.25% to 0.1% with the following package:
After an initial selling season when the RBA slashed interest rates, the AUDUSD pair turned positive on the back of the broad positive mood in the markets. There were a series of dovish comments from policymakers and in recent speeches, the historic cut and some expectations of QE were largely priced-in.
Source: GO MT4
Further national lockdowns have worsened the oil demand outlook. Crude oil prices have remained pressurised by the uncertainty on the demand side. WTI and Brent crude rebounded alongside the improvement in risk sentiment and bullish API report. The weekly Crude oil stock fell from the previous 4.55M to -8.01M on October 30. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $38.71 and $39.71 respectively.
The precious metal regained the $1,900 level on the hopes of a stimulus package earlier than expected and a weaker US dollar. As of writing, the XAUUSD pair is trading around $1,911.
Source: GO MT4
By Deepta Bolaky
@DeeptaGOMarkets
Key upcoming events
Thursday, 05 November 2020 Indicative Index Dividends Dividends are in Points |
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ASX200 | WS30 | US500 | US2000 | NDX100 | CAC40 | STOXX50 |
0 | 2.171 | 0.654 | 0.253 | 1.802 | 0 | 0 |
ESP35 | ITA40 | FTSE100 | DAX30 | HK50 | JP225 | INDIA50 |
0 | 0 | 3.156 | 0 | 0 | 0 | 0 |
Disclaimer: The articles are from GO Markets analysts, based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own; should not be taken as either representative of or shared by GO Markets. Advice (if any), are of a ‘general’ nature and not based on your personal objectives, financial situation or needs. You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.
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