Global financial markets were little changed on Wednesday morning, as investors await the upcoming Federal Reserve interest rate decision, while Congress lawmakers continue their debate over the next coronavirus-related fiscal rescue package.
The following data was compiled by Johns Hopkins University:
Global cases: More than 16.6 million
Global deaths: At least 658,914
Top five countries: United States (over 4.3 million), Brazil (over 2.4 million), India (over 1.4 million), Russia (over 822,000), South Africa (over 459,000)
US stock index futures edged higher by 0.30%, with the Dow Jones index implying an opening near 26.450 points and the Nasdaq Composite at 10.600, while the European indices were also flat.
Federal Reserve Policy Meeting:
The Federal Reserve will end its two-day policy meeting on Wednesday night, releasing a statement at 21:00 GMT+3, while its chairman Mr. Jerome Powell will host a press conference at 21:30 GMT+3.
Given the worries about the record spike of COVID-19 infection cases in some US states and the gloomy outlook for the US economy, investors expect the Federal Reserve to continue with its dovish policy stance, keeping interest rates near zero for a longer time while increasing its purchases of long term debt.
Meanwhile, the Fed extended most of its emergency lending programs by three months during its first day of the meeting yesterday, in response to the weaker-than expected US economy.
The DXY-dollar index, against a basket of major currencies fell to 93.30, reaching a fresh 2-year low. The greenback lost more than 10% since March, due to the dovish policy from the Federal Reserve and the massive fiscal rescue packages from Trump’s administration to support the US economy.
Furthermore, the US dollar was pressured after the resurgence of new virus cases in Florida and California, coupled with the further deterioration in the relationship between US and China, fading the hopes for a quicker economic recovery.
Economic Calendar for July 29, 2020 (GMT+ 3:00):
Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.