Jun 12 2020 0
This is the most important financial news for the day. These news can help you choose the most suitable forex trading strategies.
US Treasury Secretary Steven Mnuchin said the nation should not shut down the economy again, even if there was another increase in coronavirus infections. Speaking on CNBC yesterday, Mnuchin said: "We realized that if you shut down the economy, you would create more damage - such as health problems being delayed. we cannot close the economy again."
Mr. Mnuchin believes that President Donald Trump made the right decision when he urged states to ease the rules of social distancing that have crippled the US economy. He said that in the event of a recurrence, it is not necessary to impose restrictions again, as Covid-19 testing and contact tracking are improving and officials also understand more about how to prevent disease. To date, more than 2 million people in the United States have been infected with the virus.
Asian stocks are likely to decline after US stocks saw the sharpest decline in 12 weeks as fears of a spike in coronavirus infections have added to fears that a recovery Recently gone too far. Treasury bonds gained in value with the dollar. The futures market in Japan, Hong Kong and Australia all dropped at least 2%. Earlier, the S&P 500 had dropped nearly 6% and only one company in the index ended the session with a gain. The KBW Bank index of financially heavy competitors has dropped by 9%. The yen appreciated and the euro fell. Elsewhere, crude oil fell nearly 9% amid significant shifts in the global market. European stocks plunged.
Must come down
The transition to a one-way trading plan on very popular blueprint stocks on Twitter or recent chatrooms is not really a safe strategy that is expected. "Securities only go up" is a philosophy, and it was denied by the 6% drop of the S&P 500 on Thursday and nearly $ 2 trillion was withdrawn from the stock market. Retail investors once flooded the market last month with stocks of airlines, energy producers and banks creating the worst sell-offs in other sectors of the market. Although the drop is still small compared to the S&P 500 increase of 45% since the end of March, at least it shows us the wobble of a recovery that occurred next to the economy. Worst in a generation. In a stock market flooded with retail investors rushing to buy whatever moves, the quick reversal we see is more or less inevitable.
Singapore vs. Hong Kong
Singapore's role as a regional derivatives trading center may be constrained after losing a major index licensing agreement for Hong Kong. The next battle between the two Asian financial centers will be about China's stock futures. Analysts said the rivalry in hedging instruments for mainland stocks that once created a fight between cities was targeted as a hub for a range of financial businesses. from listing stocks to asset management.
Singapore Exchange Ltd. is currently the only overseas platform where investors can trade Chinese type A stock futures contracts and this product accounts for about half of the stock derivatives volume on the Exchange. However, this probably did not exist for too long when Hong Kong Exchanges & Clearing Ltd. said last year it had a similar hedging tool for its mainland stocks, MSCI Inc. - still awaiting regulatory approvals. Bruce Pang, head of macro research at China Renaissance Securities, said the launch would end the monopoly of the Singapore Exchange.