News

Euro, Stock Futures Fall on COVID19 Woes

Euro

The Euro fell against other major currencies as the coronavirus cases soar in Europe, implying further restrictions on activity. The recently released economic data showed that the recovery in the Euro region is losing pace. New lockdown measures in France and Germany raise the chances of another economic collapse. Also, investors are looking forward to the European Central Bank meeting tomorrow to grasp more insight into how the bank is willing to cope with the recent headwinds. The EURUSD declined to 1.1756, and the EURGBP fell to 0.9045.

Equities

Major stock benchmarks remained under pressure amid soaring coronavirus cases around the world and no new signs of an agreement over the next covid19 relief bill. Investors are worried that the continuous spread of the virus would force a strict lockdown that would disrupt the economic recovery, while politicians are failing to reach a compromise. The Dow Jones Industrial Average futures fell to 26903, the S&P500 tumbled to a three-week low of 3334, and Nasdaq futures dropped to 11450. Meanwhile, in Europe, the German Dax plunged to 11662, and FTSE declined to 5568.

Metals

Precious metals prices continued to trade in a tight range awaiting developments in fiscal stimulus talks, despite the growing risks erupting from soaring covid19 cases. The price of a gold ounce remains stuck between $1890 and $1912, the price of a silver ounce was steady near 24.30, while palladium futures dipped to 2337.

Oil

Oil prices extended declines amid growing investors' concerns over demand with new restrictions looming in Europe. Governments are looking for ways to stop the covid19 spread without hurting the economic activity, but it seems that the only exit is with stricter restrictions. On the other hand, the oil inventories private survey showed a buildup of 4.577 million barrels, ahead of official figures today. The West Texas Intermediate crude futures dropped to $38.09, and Brent Blend declined to $39.97.

Major Economic Events

GMT Country Event Expectation Previous

14:00

CA

 BoC Interest Rate Decision

0.25%

0.25%

14:30

US

 Crude Oil Inventories

-

-1.001

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