Foreign Exchange Market Overview - Forex Analytics | IFCM

Market Overview

Investors are worried about yet another aggravation of US-Chinese relations due to protests in Hong Kong. They arose against the backdrop of a vote on a new law restricting city self-government. US President Donald Trump announced possible measures against the PRC. However, this whole situation does not prevent the growth of world stock indices and cheapening of precious metals.

Global markets are in a rally mode today as worries about rising US-China tensions were offset by reports another US drug maker has started the first human study of its experimental coronavirus vaccine. Trading was thin yesterday with markets in US and UK closed for public holidays.

Global equities advance continues today after China’s Foreign Minister Wang Yi’s warning Sunday that some US officials are pushing relations “to the brink of so-called ‘new Cold War’ “, endangering global peace. Investors’ risk appetite was buoyed by President Trump’s announcement he is “not going to close the country” to prevent the spread of a potential second wave of COVID-19.

Equities advance has paused currently across all stock exchanges with US data expected to still show millions more Americans sought unemployment benefits over the last week. Market sentiment was supported by largely positive earnings reports and ongoing re-openings of states as investors monitor the situation with coronavirus outbreak.

Global equities are falling today after a down session on Thursday with US Labor department report showing nearly 40 million Americans have lost their jobs in the last nine weeks. Investors confidence was undermined also by rising US-China tensions as a bipartisan bill was introduced in US Senate that would sanction Chinese officials if they enforce a new national-security law in Hong Kong.

Investors are awaiting comments from Moderna regarding criticism of data on its vaccine against  coronavirus. This morning, futures on US stock indexes are being traded higher. Market participants note that news about a possible drug and vaccine from Covid-19 is now the most significant for quotes of almost all assets, since the speed of quarantine cancellation in the world depends on it.


Global equities are gaining today as worries about a second wave of coronavirus cases were offset by reports drug maker Moderna has recorded positive, early results from first human trial of its experimental Covid-19 vaccine. Treasury Secretary Mnuchin and Federal Reserve Chair Powell are expected to testify before the Senate Banking Committee on what further aid is required for the economy amid calls to extend the $660 billion Paycheck Protection Program.  

Markets are rising today after Fed chair Powell’s comment Sunday don’t ‘bet against American economy.’ Investors appetite for risk was also boosted by a new $3 trillion CARES Act bill passed by the House Friday which is not expected to pass the Republican led Senate, but the White House has indicated willingness to work out a deal on new spending.

Global equities are mixed today after a volatile session on Thursday with US Labor department report showing nearly 36.5 million Americans have lost their jobs in the last eight weeks. Investors are awaiting for US retail sales report today - expected to show retail sales decline accelerated in April.

Global markets’ retreat continues currently across all stock exchanges with US data expected to show millions more Americans sought unemployment benefits over the last week. The sentiment turned markedly bearish yesterday after Fed chair Powel’s comments provided no ground for expectations of quick economic recovery.

Start trading with IFC Markets

We are ready to support you with any kind of questions, 24 hours a day.