Market Brief, Wednesday, 29th of July, 2020
US stock markets fell 1% on Tuesday after disappointing corporate earnings and ahead of the Federal Reserve’s interest rate decision later today. Meanwhile, the market sentiment deteriorated after US lawmakers faced difficult talks last night over a proposed fiscal stimulus package.
Asian markets were lower on Wednesday morning, following the risk aversion sentiment from Wall Street. Nikkei index led the losses with 1%, as the shares of Japanese automaker Nissan Motors plunged 10% after the company forecasted huge losses by the end of 2020.
The precious metals rally lost some steam yesterday as the prices of Gold and Silver pulled back from their recent multi-year highs amid some profit-taking actions and strengthening in the dollar.
Crude oil fell more than 1% yesterday over fears about the gasoline demand outlook given the resurgence of COVID-19 cases around the world, coupled with concerns for the fate of the US fiscal stimulus package.
Looking at the forex markets, we can see the recovery of the US dollar from its two-years lows, supported by stock market losses and a spike in coronavirus cases in California and Florida.
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