Pound is back in focus today, after the news that the United Kingdom signed its
first post-Brexit trade agreement. Surprisingly it was not the deadlocked deal
with the European Union as expected but a free trade agreement with Japan.
fitting it is to be in the Land of the Rising Sun to welcome in the dawn of a
new era of free trade," the U.K. International Trade Secretary Elizabeth
Truss told reporters at a signing ceremony in Tokyo. "It used to be said
that an independent U.K. would not be able to strike major trade deals or they
would take years to conclude.
stocks started the day slightly higher but then slipped to the negative
territory before noon as hopes for a fresh monetary stimulus from the European
financial institutions are fading on spreading virus concerns. The market
sentiment doesn't look like any big sell-off now, but most traders are just
cautious. One exception in the corporate world is, Ericsson whose stocks soared
over 7% today after the telecom giant said its Q3 earnings were way ahead of
market estimates, and its CEO was "more confident" in meeting the
company's 2020 targets.
stocks made a deeper downside correction on Thursday, perhaps because they were
frightened by the clearly slowing economic recovery in Europe and a possible
vulnerability of the asset prices during the following weeks before the U.S.
presidential elections. However, later in the day the S&P500 broad market
futures and the major European indexes recovered by almost a half, as new hopes of
the EU-U.K. trade deal came, plus the sitting U.S.
S&P500 broad market index, as well as the European stocks on average, are
holding the gains of the previous two weeks, despite uncertain expectations
ahead of the November 3 elections in the United States. The British Guardian
said yesterday that their own opinion poll showed, a Democratic presidential
nominee Joe Biden’s lead over the sitting president Donald Trump has surged to
even a record 17 points, so that Biden was ahead by a 57-40 margin before the
final sprint. The handicap is even bigger than a 57%-41% margin discovered by
prudently jumped above $1915 per troy ounce at the very beginning of the
European morning trade, as many on the market decided to keep their investments
out of harm's way. It happened just as an immediate response when U.S.
President Donald Trump tweeted that he and the first lady of America tested
positive for the coronavirus. "We will begin our quarantine and recovery
process immediately. We will get through this TOGETHER!" he shared with
his social network followers. It comes after Hope Hicks, one of his closest
aides, was tested positive.
macroeconomic patchwork hardly has the potential to define the major asset
price movements for now but rather the facts of the U.S. political battle come be
at the forefront this week. The presidential race is coming up to its final
lap, just about a month before the crucial voting day on November 3. The
Democratic nominee Joe Biden who was also the former vice president alongside
Barack Obama - and the sitting president of the United States Donald Trump are
going to meet onstage in Cleveland for the first debate of the general
major global market indexes including the broad market S&P 500 index, the
high tech Nasdaq index and the industrial Dow Jones index, saw a slight drop
after the opening bell on Thursday in course of the Wall Street's stock trading
session to the renewed lows of September. However, prices just touched rather
shallow levels. Shortly after the market quickly rebounded trying to gather
more height for several hours in a row, probably encouraged by the words of
Steve Mnuchin, the U.S.
In the course
of a turbulent week, European stocks opened higher and balanced well during the
morning and at least in the first half of Wednesday's trading session, probably
thanks to the release of IHS Markit's set of purchasing managers' indexes
(PMI). The manufacturing component was propelled into the highest position
since September 2018 with a reading of 53.7 points in September after 51.7
points for August, vs a median expert polls forecast of 51.9 only.
above 50.0 level indicates expansion in the sector indicating a high pace of an
market sentiment is one of an appetite for risk. While the U.S. Federal Reserve
continues to stir markets and uncertainty about the coronavirus pandemic, it is
now possible to observe a positive correction that contrasts with the reality of
the past two days.
The Dollar fell
against the Yen and dropped slightly against the Euro on Friday, with many
short positions closing after the U.S. Federal Reserve's midweek decision.
A set of
predominantly positive macro statistics from the United States on Thursday
lessened the market's demand for safe-haven assets keeping the mid-term
sentiment for a relatively weak Greenback vs the world currency basket going.
initial jobless claims fell to 850,000 after 893,000 last week on the
background of a four-week average for jobless claims at 912,000. The initial
claims reading exceeded 1.1 million just at the end of August. Continuing
jobless claims declined up to 12.628 million after more than 13.5 million just
a week before and 14.