Oct 06 2020 0
Here are the most important financial news that no forex trader should miss.
After the RBA meeting
When the Australian government makes its budget decision late Tuesday, infrastructure, energy, finance and retail stocks will likely be among those that will benefit from the plans. Government budgets to boost spending to help lift the economy out of its first recession in nearly 30 years.
Finance Minister Josh Frydenberg is expected to announce a deficit of 220 billion AUD ($158 billion) when he announces the budget, equivalent to 11.6% of gross domestic product and stock investors. We look forward to how the measures will help companies after struggling with their worst profitable season in a decade. Australian shares have not appreciated as much as some other regional markets after hitting an eight-year low in March due to Covid-19 restrictions.
Release from hospital
President Donald Trump aides will try to keep him in the White House mansion after he is discharged from the hospital, but it is unlikely they will be able to restrict his movements. Trump has urged Americans not to fear Covid-19 after receiving medical care that included three strong drugs and an airlift to the hospital. "Don’t be afraid of Covid. Don’t let it dominate your life." Trump tweeted on Monday afternoon, before he walked out of the hospital without help. “We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago! ”Trump's Dr. Sean Conley said coronavirus-infected patients can stop spreading the virus within 5 days of diagnosis and Mr. Trump will be monitored to determine when he is no longer contagious. The White House plans to let Mr. Trump stay at the mansion for a few days before returning to normal, one of the people in charge said.
Asian stocks are likely to follow US stocks to go up amid optimism that President Donald Trump will leave hospital and lawmakers will move closer to offering more stimulus. Treasury yields soared and the dollar weakened. Futures markets indicate modest gains in Japan, Australia and Hong Kong. US stocks closed at an intraday high, rebounding from Friday's lows after Mr Trump revealed he was infected with coronavirus. Energy, healthcare and technology stocks were the biggest gainers in the S&P 500, pushing the benchmark as far as possible in nearly four weeks. Longest-term Treasury yields jumped to a 3-month high as traders re-adjusted their odds of taking their election bets following Joe Biden's latest poll data. In another development, crude oil price rebounded from its lowest level in 3 weeks. Gold rose.
The Koreans must go
South Korean companies are reluctant to relocate from China, despite the government's best efforts to lure them back amid pandemic and US-China trade tensions. According to data from the Korea Institute of Industrial Economics & Trade, only 80 companies - out of thousands - linked in China have "repatriated" their manufacturing operations to their home countries since. when Korea enacted a "U-Turn" law in 2013 to stem the wave of overseas production. Even after the government expanded its refinancing subsidies to IT and services companies earlier this year, the attractiveness of "repatriation" appears to be limited. It is possible that companies are considering cutting operations in China, looking instead to move to Southeast Asia, suggesting that Korea is missing out on opportunities to bring jobs, secure supply chains, and maintain domestic production competitiveness.
With the Covid-19 epidemic largely under control in China, the Golden Week holiday is demonstrating the country's confidence in economic recovery and public health measures. According to the Ministry of Culture and Tourism, during the first four days of the one-week holiday season that begins October 1, approximately 425 million people traveled in the country, nearly 80 percent of the total traveling last year.
The increase in activities is in stark contrast to the rest of the world - the global tourism industry is expected to lose at least $1.2 trillion by 2020 - and it also underlines the resilience. China's relative economic recovery. As of September, the OECD forecasts an expansion of 1.8% this year will put China in the group of 20 countries with an expansion rate. Hotel prices skyrocketed, car hailing applications, tickets to the Great Wall have been sold out and flight bookings have increased by 11% compared to 2019.