Thursday 24th September: Markets lose as investors lose faith in COVID recovery

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.11%, Shanghai Composite down 1.72%, Hang Seng down 1.90%, ASX down 0.81%
  • Commodities : Gold at $1862.05 (-0.34%), Silver at $22.34 (-3.33%), Brent Oil at $41.48 (-0.69%), WTI Oil at $39.62 (-0.78%)
  • Rates : US 10-year yield at 0.668, UK 10-year yield at 0.208, Germany 10-year yield at -0.516

News & Data:

  • (CHF) SNB Policy Rate -0.75% vs -0.75% expected
  • (USD) Crude Oil Inventories -1.6M vs -2.5M expected
  • (USD) Flash Services PMI 54.6 vs 54.5 expected
  • (USD) Flash Manufacturing PMI 53.5 vs 52.5 expected
  • (GBP) Flash Services PMI 55.1 vs 57 expected
  • (GBP) Flash Manufacturing PMI 54.3 vs 54.3 expected

Markets Update:

Asian stock markets, led by South Korea, are notably lower on Thursday amid worries about the global economic recovery due to urging coronavirus cases in certain parts of the world and uncertainty about new U.S. fiscal stimulus.

Federal Reserve Chair Jerome Powell noted that despite progress in rebounding from the coronavirus economic downturn, “there is a long way to go.”

The Nikkei 225 fell 1.1% while the Topix index shed 1%. Hong Kong’s Hang Seng index fell 1.9%. Mainland Chinese stocks slipped, with the Shanghai composite down 1.7% while the Shenzhen component declined 2.4%.The Kospi in South Korea dropped more than 2% in afternoon trade. Over in Australia, the S&P/ASX 200 declined 0.8%.

In the currency market, the dollar touched a new two-month high. The U.S. dollar index, which tracks the greenback against a basket of its peers, sat at 94.405 following its rise from levels below 93 this week. Oil prices fell amid uncertainty about demand because of pandemic-related travel restrictions.

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