FOREX TRADING STRATEGY SEP 7 - GLOOMY MONDAY
Before we start trading forex at the beginning of the week, we must check out the latest news around the financial in order to make sure that we know where the market is heading.
Market on Monday
Stocks are headed for a cautious start on Monday after the biggest two-day slide in global equities since June left investors nervous. Currencies start a new week with little volatility. S&P 500 and Nasdaq 100 index futures started a flat week as the US market closed on Monday for the holiday after its worst week for the Nasdaq since March. signaled a quiet opening in Japan and Hong Kong. The dollar was stable during the early forex trading, while the euro appreciated. Oil was weaker at the opening.
The volatility in stocks is still up as investors continue to map the way for a global economy with pandemic. Federal Reserve Chairman Jerome Powell responded positively to US employment data on Friday, but reiterated his view that the economic recovery has a long way to go and interest rates will be. remained low for a while. One major event this weekend is the European Central Bank policy meeting.
Hong Kong police have arrested hundreds of people, including the main activists, as protests flared again on the streets of the city on Sunday after weeks of relatively calm since the execution. national security law. Hong Kong police said in a Facebook post: A total of 270 people had been arrested for gathering illegally as of 9 p.m. local time, and 19 others were arrested on charges including disruptive behavior, obstructing and assaulting the police. Tensions are rising amid the city plans to establish a health law allowing travel between Hong Kong and neighboring cities in mainland China, which has raised ethical concerns. among health professionals and concerns about increased surveillance among activists.
An open market
Chinese regulators vowed to accelerate the opening of the nation's capital market and deepen reforms to attract more foreign investors. China Securities Regulatory Commission Vice Chairman Fang Xinghai said on Sunday: "The regulator will expand the scope of investments allowed into Hong Kong-linked stock exchanges and allow homeowners to increase their investment. Foreign investment traded more commodity futures products." Officials are planning to announce the revised regulations on eligible foreign institutional investors as soon as possible to increase their "readiness and confidence" when investing in China, he said. Foreign investors currently hold only 4.7% of Chinese shares outstanding, lower than the 30% level in markets such as Japan and South Korea.
The world economy's recovery from the abyss of the coronavirus crisis is fading, opening an uncertain end to this year. There are many ongoing concerns. The coming northern winter could trigger another wave of the virus while the vaccine wait continues. Government support for workers in need and bank extensions in repayment of loans will come due. Tensions between the United States and China could worsen in the upcoming presidential election in November and weaken business confidence. Joachim Fels, global economic advisor at PIMCO, told Bloomberg Television: "We have seen the peak of recovery."