Market Brief, Wednesday, 9th of September, 2020
The major US indices lost ground during Tuesday's trading session following the long weekend. Tesla in particular crashed by more than 21% causing the entire big-tech complex to decline. The Nasdaq is trading around 11,150 while the S&P is trading around 3350.
In Asia, equities followed their US counterparts with the ASX down by 2.4% and the Nikkei down by 1.2%. In China, the Hang Seng and Shanghai composite are both down by around 1.1% each.
UK’s chief Brexit negotiator Frost has commented that a deal with the EU is not achievable without compromising the red lines set by the UK. This caused weakness in the Pound Sterling across the board with EURGBP trading above the 0.9 level.
The dollar index broke firmly above the 93 levels and is currently trading around 93.50 with its major trading partners the EURUSD trading below 1.18 and GBPUSD trading below the 1.30 level as there is optimism that US GDP is set to return to pre-COVID levels and unemployment to fall.
WTI and Brent continued their slide down to the 36$ and 39$ handles as worries about weaker demand and the recent dollar strength took its toll in the energy space.
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