Global Fundamental Analysis 11/06/2020

OPENING CALL: The Australian share market is expected to open lower. 


Fed Officials Project No Rate Increases Through 2022  – Federal Reserve officials projected no plans to raise interest rates through 2022 and said they were committed to providing more support to the economy following shutdowns to contain the coronavirus.


Tesla investors pushed the auto maker’s stock to more than $1,000 a share, lifting its valuation nearer to Toyota’s, after Elon Musk told employees it was time to begin volume production of the company’s long-promised, all-electric semitrailer truck.


Overnight Summary




Australian Market


US Market

U.S. stocks slumped back toward their morning lows, even after the Federal Reserve projected no interest-rate increases through 2022.  The Dow Jones Industrial Average was down 257 points, or 0.9%, as of the 4 p.m. close
of trading in New York. It briefly traded higher after the Fed statement, after falling as many as 334 points in the morning. The S&P 500 fell 0.5%. The tech-heavy Nasdaq Composite rose 0.7%.

The Fed’s support has been a key driver of the equities rally. After last week’s surprisingly chipper jobs report, there was some questions about how the central bank would calibrate its stimulus programs.



Gold futures gave up earlier gains to finish lower, marking their first loss in three sessions, but prices moved up in electronic trading after the U.S. Federal Reserve indicated that it does not plan to raise current interest rates, which stand near zero, through at least 2022.

August gold was at $1,735.50 an ounce shortly after the Fed announcement. It had settled at $1,720.70, down $1.20, or 0.07%, on Comex Wednesday. For the week thus far, gold prices have climbed 0.9%, according to FactSet data.


Oil Futures

Oil prices have shot up from the historic depths hit during the coronavirus lockdown, but analysts and traders worry the rebound has been too sharp and could prove short-lived.

West Texas Intermediate futures for July delivery rose 1.6% to $39.56 a barrel after the U.S. Energy Information Administration said the country’s commercial crude stockpiles rose last week to their highest level ever. Brent crude, the global benchmark for oil, traded 1.5% higher at $41.77 a barrel.



The benchmark ICE U.S. Dollar Index touched fresh session lows after the U.S. Federal Reserve indicated that it does not plan to raise current interest rates, which stand near zero, through at least 2022.  The WSJ Dollar Index settled down 0.28 point or 0.31% today to 90.41.


European Markets


Asian Markets

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Source - database | Page ID - 21807

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