US Stimulus Rising Covid Falling Oil
The stimulus clock ticks, covid cases rise & oil extends losses
Share this:
Wall Street ended lower as the stimulus clock ticked. News that there was still no agreement on fiscal stimulus unnerved investors. The negativity spilled over into Asia overnight and Europe is also set to start in the red.
The Tuesday deadline for a fiscal stimulus agreement between the Democrats and Republicans looks as if it could come and go without an agreement being reached. Whilst the two sides are narrowing their differences, differences still remain and the deadline is later today. The likelihood of a deal being achieved before the November 3rd election is slipping lower.
Not only are investors grappling with the idea that the world’s largest economy will have to wait for additional stimulus, rising coronavirus cases are also dragging on sentiment. Europe recorded a record number of new daily covid cases on Monday and lockdown restriction are being tightened across the region.
There could still be some hope for Airlines as Heathrow launches 20-minute covid test for passengers flying to destinations which require proof negative test to fly. This could be the start of an initiative which helps lift the struggling aviation sector off the ground.
Trump & Netflix in focus later
Looking ahead, the final election debate between Trump and Joe Biden will be live. Whilst Joe Biden holds the lead in the national polls there are signs that this could be narrowing as we move closer to the big day. Netflix is also due to report later today,
Looking ahead, the final election debate between Trump and Joe Biden will be live. Whilst Joe Biden holds the lead in the national polls there are signs that this could be narrowing as we move closer to the big day. Netflix is also due to report later today,
A word on oil
Oil prices are dropping for a fourth straight session on Tuesday amid growing concerns that the second wave of covid cases globally will choke the oil price recovery whilst increasing output from Libya is providing additional supply at a time when it is not needed.
Tighter lockdown restrictions are being applied globally as the number of covid cases crosses the 40 million mark, with Europe and the US seeing a strong resurgence.
An OPEC meeting on Monday did little to calm concerns over waning demand and plentiful supply as Russia and Saudi Arabia avoided giving any indication, they would reconsider the planned output increase in January.
Currently the OPEC+ group will stick to the planned output cut of 7.7 million barrels per day in December, reducing to5.8 million in January. WTI is currently just holding above $40.
Oil chart
Wall Street ended lower as the stimulus clock ticked. News that there was still no agreement on fiscal stimulus unnerved investors. The negativity spilled over into Asia overnight and Europe is also set to start in the red.
The Tuesday deadline for a fiscal stimulus agreement between the Democrats and Republicans looks as if it could come and go without an agreement being reached. Whilst the two sides are narrowing their differences, differences still remain and the deadline is later today. The likelihood of a deal being achieved before the November 3rd election is slipping lower.
Not only are investors grappling with the idea that the world’s largest economy will have to wait for additional stimulus, rising coronavirus cases are also dragging on sentiment. Europe recorded a record number of new daily covid cases on Monday and lockdown restriction are being tightened across the region.
There could still be some hope for Airlines as Heathrow launches 20-minute covid test for passengers flying to destinations which require proof negative test to fly. This could be the start of an initiative which helps lift the struggling aviation sector off the ground.
Trump & Netflix in focus later
Looking ahead, the final election debate between Trump and Joe Biden will be live. Whilst Joe Biden holds the lead in the national polls there are signs that this could be narrowing as we move closer to the big day. Netflix is also due to report later today,
Looking ahead, the final election debate between Trump and Joe Biden will be live. Whilst Joe Biden holds the lead in the national polls there are signs that this could be narrowing as we move closer to the big day. Netflix is also due to report later today,
A word on oil
Oil prices are dropping for a fourth straight session on Tuesday amid growing concerns that the second wave of covid cases globally will choke the oil price recovery whilst increasing output from Libya is providing additional supply at a time when it is not needed.
Tighter lockdown restrictions are being applied globally as the number of covid cases crosses the 40 million mark, with Europe and the US seeing a strong resurgence.
An OPEC meeting on Monday did little to calm concerns over waning demand and plentiful supply as Russia and Saudi Arabia avoided giving any indication, they would reconsider the planned output increase in January.
Currently the OPEC+ group will stick to the planned output cut of 7.7 million barrels per day in December, reducing to5.8 million in January. WTI is currently just holding above $40.
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Crude Oil Analysis: Geopolitical Risk Continues to Drive the WTI Barrel Higher
During recent trading sessions, a new wave of buying momentum has continued to gain relevance around WTI crude oil price action. Over the last three trading sessions, the market has maintained a bullish streak and is now up more than 5.5%, highlighting significant buying pressure in the short term.
Crude Oil Forecast WTI Prices Come Under Pressure as Middle East Risks Ease
Over the last two trading sessions, WTI crude oil has once again displayed a notable bearish bias, with prices falling nearly 6%. Part of this renewed selling pressure has been driven by recent developments in the Middle East, which have helped temporarily ease the geopolitical tensions that had supported the oil risk premium in previous weeks.
EUR/USD, FTSE 100 Forecast: Two trades to watch 1507
EUR/USD rises after weaker US CPI, PPI up next. FTSE 100 falls as weak China GDP data hits miners.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.