Market Overview

6 August 2020

Slowdown of the Stimulus Package’s Negotiations Affect Market Sentiment

Today, the market sentiment is one of risk aversion. There are no signs of progress in the negotiations on the aid plan for the coronavirus in the United States, and US Secretary of State Mike Pompeo said the White House could ban other Chinese applications that it considers to jeopardise the country's national security.

The Dollar traded on the defensive during the Asian session on Thursday, as investor optimism about the approval of new fiscal stimulus in Washington seemed to decline, which reduces the currency's attractiveness.

Treasury yields rose on Wednesday, after the signs of an increase in the activity of the US service sector, which has more weight in the economy, have undermined the appetite for bonds.

Oil prices have been down in Asia, despite now going green, with investors weighing fears about US-China tensions and the Covid-19 pandemic data against figures showing another sharp drop in reserves.

 

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