Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

As COVID deaths pass 1m mark, developing countries will suffer

Politics / Pandemic Oct 02, 2020 - 02:18 PM GMT

By: Submissions

Politics

Global deaths from Covid have passed the 1 million mark. Covid headlines remain one of the main drivers of global markets as the latter are trying to gauge the possible trajectory of the global economy and the likely policy response. Many countries are contemplating further tightening of Covid-related restrictions, which means that their economies may require more support. With their borrowing costs remaining low, developed economies may continue pursuing lax fiscal policies in years to come. Developing countries may find they have less room for fiscal stimulus, partly because the recent increase in risk aversion has driven up their borrowing costs.


On Tuesday evening, the incumbent US President Donald Trump and Joe Biden, the Democratic candidate, had their first televised debate.The debate was extremely charged emotionally. Repeated interruptions by President Trump prevented a meaningful discussion of candidates’ views on important issues. The aggressive debate tactic is unlikely to help Trump to lure more voters into his camp. Meanwhile, Biden, who maintained dignity and avoided potentially costly mistakes during the debate, should not lose any of his support. Importantly, he managed to emphasize Trump’s failures in dealing with the coronavirus epidemic in the US, which was among his main priorities during the debate. On balance, the debate may have improved Biden’s chances to win.

The US markets are also watching the fate of the new $2.2trn fiscal stimulus plan released by the White House Democrats. There seems to be little chance of the Republicans supporting the draft plan in the Senate during the most acute phase of the US election campaign. With the recent demand indicators surprising on the upside (see below), the Republicans may dispute the need for another generous package.

Governor of the Bank of England Andrew Bailey said that he could not put a date on the end of negative rate review and that negative rates would require extensive communication. His statement supported the British pound, which has performed well vs. USD ahead of the crucial talks on the future of the UK-EU trade held this week.

A slew of US demand-related statistics released yesterday was surprisingly strong. US September consumer confidence rose to 101.8, vs 90 expected, the highest since April. US August goods trade balance widens to a record $83bn deficit, led by a rise in imports (the latter also indicates demand recovery). US 20 city home prices advance at 3.9% YoY, highest since Dec 18.
Eurozone September economic confidence increased more than expected, to 91.1 (which is the highest reading since March). German Sep CPI fell to -0.4% YoY vs -0.1% expected, lowest since 2015. The CPI move was driven by low energy prices and the VAT reduction.

In the emerging market space, the Russian rouble and the Turkish lira remained in focus. The Russian currency is suffering from a combination of negatives, including the threat of US and EU sanctions for the poisoning of opposition politician Navalny, risk aversion ahead of the US elections, and oil market softness. The announcement by Sberbank that it is going to pay generous 2019 dividends in October (part of which are going to be exchanged into FX and repatriated) has not helped. As USDRUB approached the psychological level of 80, the Russian Central Bank promised a little more FX intervention in the open market in 4Q, which helped to stop the slide. The Turkish lira remained under pressure yesterday as Armenia blamed Turkey for shooting down the Armenian jet. Turkey denied this report.

By Simona Stankovska

https://exante.eu/

© 2020 Copyright Simona Stankovskar - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in