Public Security chief launches digital vehicle plate wallet service    'Action is in our nature': 4th Saudi Green Initiative Forum to be held at COP16    Pop hit APT too distracting for South Korea's exam-stressed students    Saudi Arabia's inflation rate hits 1.9% in October, the highest in 14 months    Mohammed Al-Habib Real Estate Co. sets Guinness World Record with largest continuous concrete pour    PIF completes largest-ever accelerated bookbuild offering in MENA region    Saudi Arabia signs renewable energy program with Azerbaijan, Kazakhstan and Uzbekistan at COP29    Australia and Saudi Arabia settle for goalless draw in AFC Asian Qualifiers    Human Rights Watch accuses Israel of mass displacement in Gaza amounting to war crime    Thousands of protesters march in Paris ahead of tense football match between France and Israel    Republicans win 218 US House seats, giving Donald Trump control of government    UN sounds alarm at Israel's 'severe violations' at key buffer zone with Syria    Order vs. Morality: Lessons from New York's 1977 Blackout    Saudi, Indian foreign ministers co-chair Cooperation Committee meeting in New Delhi    South Korean actor Song Jae Lim found dead at 39    Don't sit on the toilet for more than 10 minutes, doctors warn    'Marvels of Saudi Orchestra' to dazzle audience in Tokyo on Nov. 22    Saudi Champion Saeed Al-Mouri scores notable feat in Radical World Championship in Abu Dhabi with support from Bin-Shihon Group    Rita Ora is tearful in tribute to Liam Payne at MTV Awards    France to deploy 4,000 police officers for UEFA Nations League match against Israel    Al Nassr edges past Al Riyadh with Mane's goal to move up to third    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Dow tanks as promising Oxford vaccine halted
Published in The Saudi Gazette on 09 - 09 - 2020

LONDON — US equities have extended their weakness with the S&P falling 2.8 per cent and NDX crumbling by 4.8 percent (a greater than 2 standard deviation move and now down around 10% since last Wed). All sectors finished in the red, though the move was led by mega-cap tech stocks (with Tesla fealling 21%).
In FX, the USD strengthened against G10 save the JPY (+0.2%), with NOK the underperformer (-2.2%) alongside a sharp slide lower in oil prices (WTI -7.6%). Overnight, following the US close news came out that the Astrazeneca COVID-19 vaccine, one of the leading potential vaccines, has been put on hold. S&P futures show losses extending this morning.
GBP underperformance continues, with recent market favorite being long EURGBP being put to the sword. The ‘bearish' UK related headlines continue to follow, late last night UK PM Johnson announced that social gatherings of groups of more than 6 people will be banned from Sept. 14 across the whole of England, as a result of a recent spike in the number of cases.
The UK PM has been framing a no deal as a good thing in a more targeted manner, calling it an Australian deal because it is more PR friendly. The UK government has reportedly drawn up a bill that breaks the Withdrawal Agreement and International Law, though details have yet to be published, Cabinet Minister Brandon Lewis confirmed in the House of Commons that ‘this does break international law in a specific limited way.' This has resulted with the resignation of Jonathan Jones the Head of UK Government Legal Department due to his unhappiness at the decision to violate an International Treaty.
All eyes on ECB tomorrow, following the strong rally in EURUSD and core CPI at the lowest ever, the ECB has been talking the EUR lower over the last couple weeks. Market expects the ECB to repeat the verbal interventions against further EUR strength, although policy options are limited for now.
EURUSD — closed below 1.18 along with the 200-period MA and the 5-month trend line, as expectations of dovish ECB and risk aversion in stock markets boosted Eurozone government bonds, pushing yields lower. The yields are likely to remain under pressure today if global stocks and oil extends their decline. Meanwhile, the Dollar Index started to break to the upside, if the bullish momentum persists, we could see the single currency retesting 1.17, which is the line in the sand for the bulls.
GBPUSD — trades below 1.30 for the first time since July as fears of no-deal Brexit and recall of the coronavirus-led restrictions weigh on the quote. UK PM Boris Johnson's fresh restrictions, based on the latest resurgence in the pandemic, are likely to impact the recently picked up economic activities. Moreover, fears of the BOE's rate cut gains momentum once again and drag the pair lower. Today, any Brexit update will be key to watch, however, if we receive no positive updates from the UK-EU negotiations, then traders will be risking another gloomy day amid this light calendar and risk-averse sentiment.
USDJPY — the dollar/ yen broke below the 106 support yesterday as the market mood remained sour after AstraZeneca halted its COVID-19 vaccine trials. However, broad US dollar strength limited the downside in the spot. US indexes were sharply down in the first trading day of the week as the rout in tech shares continued. The Nasdaq lost over 400 points and was the worst performer. The poor performance of US equities weighed on Treasury yields, which also edged lower. Today, if equities continue to drop, then the pair will likely follow as the bears will be targeting the 105.50 support.
FTSE 100 — ended yesterday's session in the red on a daily reversal bar close favoring further lower prints today with airliners and healthcare stocks expected to weigh down on the index, outweighing a weaker pound, after UK's Johnson tightened lockdown measures and the Astrazeneca vaccine got halted due to one patient suffering a severe reaction. An hourly close below our support level at 5885 should confirm bearish momentum with 5800 as the next support target.
DOW JONES — tanked by more than 700 points in Tuesday's session as heavyweight technology stocks continued to lead the selloff and the halting of the most promising Oxford vaccine, after one patient suffered a serious adverse reaction, weighed down on market sentiment with technicals favoring lower prints with 27400 and 27175 as the next support targets.
DAX 30 — ended yesterday's session in the red on daily bearish engulfing candle favoring further downside in today's session with 12875 and 12800 as the next closest support targets as investors look ahead to Thursday's ECB policy meeting.
GOLD — held steady in yesterday's session caught by a strengthening dollar on one side and a selloff in equities on the other. Increasing uncertainty towards the Oxford vaccine, geopolitical tensions and Indo-China border tensions should keep the yellow supported as investors look ahead to today's JOLTs job openings with 1920 support level to hold favoring further upside with 1945 and 1960 as the next resistance targets.
USOIL — WTI Crude tanked by 6% to end yesterday's session sub $40 at $36.73 for the first time since mid-June on the back of worsening US-China relations, a retreat in global stocks, and the halting of the Oxford vaccine, with all eyes on EIA short term energy outlook and API's weekly inventory data to be released today. Short term technicals favor a bounce higher with 36 key support level to watch.
— The writer is chief market analyst, Squared Financial


Clic here to read the story from its source.