Jul 31 2020 0
Let's take a look at the latest udates of today so that we can choose the best forex trading strategies.
At the crossroad
The second-quarter gross domestic product of the United States dropped the most in record, while 17 million Americans applied for unemployment benefits in mid-July. The astonishing 32.9% decline in GDP still lies. in many people's predictions, but the number of applications for unemployment benefits is not. The continuous increase of nearly 900,000 people claiming benefits is the latest evidence that the early recovery is ruined by the coronavirus revival and can only last for a short time.
Prospects could be even worse. Critical bailouts during the pandemic, such as an additional $600 in weekly unemployment benefits, are about to expire, and lawmakers are not going anywhere with another stimulus package. James Knightley, international economist at ING Financial Markets said: "We are at the crossroad. One way is the fear that Covid-19 growing and the way it changes people's behavior. The second is that the unemployment rate is rising because countries are reversing the process of reopening. And the third is that income is limited while benefits are about to expire. "
A big buy
Chinese computer chip importers are increasingly buying their equipment through Hong Kong, in the hope that U.S. sanctions on the territory will soon make transactions much more difficult. Hong Kong trade covers more than 38% of the average total chip imports to China. The re-export of semiconductors through Hong Kong to the mainland increased by 11% in the first half of the year compared to the same period in 2019, nearly double the increase in total chip purchasing power, according to calculations by Bloomberg. Prior to Beijing's imposition of national security laws on Asian financial centers, the U.S. government had revoked special trade positions that reduced trade in some sensitive goods, including a number of computer chips. For buyers like Huawei Technologies Co., Xiaomi Corp or Lenovo Group, the worst case scenario could lead to serious supply bottlenecks.
A quiet market
Asian stocks are likely to have a quiet start to the last trading day of the month, while earnings reports from tech giants have boosted the US stock exchange futures market. Treasury bonds gained and the dollar slid. The futures market in Japan and Australia declined, less volatile in Hong Kong. Shares of Apple, Amazon, Alphabet, and Facebook soared into after-hours trading as a result of exceeding Wall Street estimates, raising S&P 500 and Nasdaq 100 futures. Earlier on Thursday, US stocks fell at closing as data showed the US economy had the strongest contraction in history and the number of Americans applying for unemployment benefits increased. Elsewhere, oil prices fell after receiving weak U.S. economic data.
The rise of Apple
Apple reported quarterly revenue that broke Wall Street forecasts, causing the stock to soar about 5% during extended trading hours. The world's largest technology company also announced a four-to-one split after its stock rose more than 80% in the past year. Financial revenue in the third quarter reached 59.7 billion USD, a record in the period of June. The figure is up 11% from a year earlier and breaks analysts' estimates of $52.3 billion, according to data compiled by Bloomberg. The pandemic is keeping people at home, which has fueled the need for millions of consumers' Apple devices to use the internet to stay in touch with friends, family and colleagues.
Apple CEO Tim Cook said: "The pandemic is likely to boost iPad and Mac sales due to blockade rules and increased distance learning, while Apple's store closure is weighing on sales. iPhone number ". The cheaper iPhone SE from Apple, launched in April, is also trendy with tougher economic conditions. The company plans to launch a new Mac computer with its own processor, cheaper HomePod and a series of new iPhones later this year.