May 20 2020 0

Waves after waves of the outbreak are hitting the Central and South American hard. The market is greatly affected by this. Check out the latest news today to see what forex trading strategies are suitable.

About the outbreak

Brazil is currently the hottest spot in the world where the virus has grown, accounting for 13% of new global infections last week, while the number of infections in India increased at the fastest rate in Asia - up to 100,000. case. The Russian prime minister returned to the office three weeks after being tested positive for the virus - a period in which the total number of infections in Russia nearly tripled, in less than 300,000 cases. The European Union criticized President Donald Trump's threat to permanently freeze funding for WHO and said that the fight against coronaviruses would require global cooperation.

On the other hand, China is likely to target export from Australia in response to Covid-19's call for an investigation into the origin of Covid-19. Meanwhile, New York City is struggling to meet the standards for reopening and is still seeing an increase in the number of cases. However, Governor Andrew Cuomo praised the progress in the state capital area and Long Island.

Bearish market

Asian stocks were poised to follow US stocks lower after reports circulated that vaccine research by Moderna Inc. - contributing to yesterday's rally - did not generate enough important data to assess its success. Treasury bonds gained. The futures market in Japan, Hong Kong and Australia all fell. The S&P 500 index dropped about 1%, losing points during the last trading hour. The risky assets kicked off the new week with an advantage after news from Moderna boosted expectations about the coronavirus vaccine, but investors are struggling to maintain optimism as it continues. keep an eye on pandemic prevention efforts and the process of restarting the economy. Earlier, Federal Reserve Chairman Jerome Powell reiterated in a Senate hearing that the central bank would be ready to use all ammunition in its arsenal to help the American economy overcome the coronavirus epidemic

Holding the stock

While Wall Street rivals including Stan Druckenmiller and David Tepper may be sounding alarm bells about the stock market, some of the world's biggest investors are trying to stick or rise. intense hold. Strategists and capital managers at Capital Group, Franklin Templeton and BlackRock Inc. - jointly monitoring about $ 8.8 trillion - says the stock remains attractive even when the threat of the second wave of coronavirus infection emerged at a time when there was no medical solution. So what is their reason? We have passed the first phase of the boom, central banks and governments are supporting the market and stocks are becoming attractive compared to other assets such as bonds. The Franklin Templeton multi-asset solution group - which manages about $ 123 billion - is expected to increase the amount of equity held since mid-March. The team is betting that global stocks will outperform them. bonds until the end of 2021, according to Wylie Tollette, head of customer service.

A threat from unemployment

The current political threat of President Xi Jinping is the unemployment of millions of citizens across China. Although no democratic elections are held, China still faces strong internal pressure to bring economic benefits to the nation of 1.4 billion people. In a speech on December 31, 2019, Xi said 2020 would mark a "milestone" when China completed its "building a moderately prosperous society". As originally envisaged, that goal includes doubling per capita income by 2020 compared to 2010, while doubling gross domestic product and reducing poverty. However, challenged by a prolonged recession and a trade war between the United States and China, those goals were suddenly pushed by the coronavirus pandemic. This fact will be made clear at the legislature's annual meeting this week - the biggest political event of the year in China: For the first time, Xi Jinping's government will probably avoid bringing set growth goals for decades when the world's second-largest economy suffered the worst performance after Mao Zedong's time.

Back in time

Australia's success in curbing the spread of Covid-19 is helping the country gradually remove some restrictions, even as much of the country is still closed from the rest of the world, which brings the economy back to the time before globalization. Mining and agriculture continue to support exports, the government is still seeking ways to restore production. However, the influx of tourists, students and immigrants from abroad has been frozen, creating hope for the recovery of domestic consumption. The closed border and inland dependence brought the economy back to the 1980s, before Australia lifted tariffs, opened trade. Shops and restaurants are gradually reopening, but in order to promote a recovery in consumption, households need to dismiss concerns about job security and debt to boost spending. pepper. However, that is not easy!


Mario Draghi

Hey, I’m Mario Draghi. I’m a writer currently resided in Thailand. For my forex experience, I have been working with brokers and trading for 5 years. Hope that you'll enjoy my articles about all forex-related matters.

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