Morning Brief
Financial markets traded in a relatively tight range during the Asian session as market jitters remain in place, following an increase in market volatility on Monday after the Biden administrations stimulus bill faced opposition in US Congress.
The mood towards the proposed stimulus bill has improved somewhat after reports this morning suggested that Minority leader Mitch McConnell signalled that he would step back from an ultimatum over Senate rules that sparked a partisan showdown, which threatened to obstruct President Biden’s legislative agenda.
Antipodean currencies and US futures have taken hit after China announced that they will be conducting military exercises in the South China sea this week. The move is seen as a counter measure after a US aircraft group entered the South China sea on Sunday.
US Treasury Secretary Janet Yellen recently commented that she will take a hard stance towards China. Secretary Yellen offered harsh words towards China during for confirmation ceremony.
China also reported an improvement in new COVID-19 infections and vaccine roll-out. Japan has also announced that they will be considering extending the ongoing state of emergency. The Bank of Japan meeting minutes showed that the central bank stands ready to act if the economic situation in Japan worsens.
The VIX volatility index has settled back to 26 after sparking to 27, following major moves in the stocks and the foreign exchange market during the latter part of Monday’s US trading session.
US stocks incurred a major bout of market volatility yesterday after video game stock had a wild trading session and get many traders and hedge funds -off-guard after it exploded to the upside.
The euro currency is notably weaker this morning as Italian Prime Minister Conte is set to resign, leaving the Italian government without a leader to effectively guide the country during the COVID-19 pandemic.
Traders will be keeping a close eye on the ITA40, Italian bond market, and the euro currency today. It is noteworthy that the EURUSD is doing relatively well, considering the scale of the bearish news at the moment, however, the ITA40 is starting to breakdown and has suffered three consecutive days of heavy losses.
The British pound continues to erode recent gains against the US dollar at the start of the Europeans session. UK Jobless Claims came in at 7,000 against last month’s 64,300 headline number.
Many analysts and economists are arguing that the UK jobs figures are increasingly distorted due to the ongoing furlough scheme. Currency traders have taken a cue from risk-off market sentiment and continue selling sterling despite the better-than-expected jobs numbers this morning from the UK economy.
Microsoft is set to kick-off earnings US season later today on the Nasdaq, expect plenty of volatility around the stock. Consumer Confidence and API US weekly crude stockpile data headlines the economic docket during the European trading session.
All eyes will be on Capitol Hill later today as the Democrat party attempt to pass the new stimulus bill into law. Any negative developments or fresh push-back from the Republican party is likely to take another toll on risk sentiment.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |