Global markets 1% lower on California’s lockdown

Vrasidas Neofytou

Vrasidas Neofytou
Head of Investment Research

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Market Brief, Tuesday, 14th of July, 2020


US markets ended lower on Monday, erasing earlier gains after California closed all indoor activities following a surge in COVID-19 cases. Yet, the Nasdaq index opened the session with 2% in profits, making fresh all-time highs, before closing down 2% led by losses in Tesla and Amazon.

Fig.01: Nasdaq Composite, 1-hour chart


Asian markets fell 2% on Tuesday morning, following the overnight selloff on Wall Street, coupled with fresh tensions between US and China for the legal status of the South China Sea.

Fig.02: Hang Seng index, 1-hour chart


The WTI crude oil price fell 2% on Monday, breaking below $40 per barrel, on concerns that the newest reopening rollbacks in California could limit the recovery in fuel demand in the US.

Fig.03: WTI crude oil, 30 minutes chart


Gold slipped below the key level of $1,800 per ounce while Silver dropped below $19 per ounce on Tuesday morning, due to a stronger US dollar and profit-taking actions.

Fig.04: Gold price, 30 minutes chart


The US dollar was stronger across the board this morning, regaining back its safe-haven status in response to the rising coronavirus cases, the fresh lockdown measures, the stock market losses, and the geopolitical tensions.

Fig.05: DXY-US dollar's index, 1-hour chart

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