1. Markets Turn Lower Amid Fresh Concerns
Stock markets took a dive yesterday after a number of events on multiple fronts spread fresh concerns. In the U.S., President Trump attacked China quite heavily in his speech in front of the UN assembly which disappointed investors who were hoping that negotiations were finally making positive headway. Trump’s latest attack came despite news of China proceeding to buy pork and soybean products from the US. Nancy Pelosi also announced on Tuesday that the House would begin a formal impeachment inquiry against President Trump over allegations that he sought to enlist a foreign power for his own political gain. The inquiry into President Trump is unlikely to have any effect; however, markets will likely remain bearish today while the USD dipped briefly on the news.
2. Forex Preview: USD Recovers
The USD took a hit in the risk-off wave but remained at good levels given there is hardly any other choice in the market to invest in at the moment. The EUR temporarily benefited from USD weakness which is already fading out again this morning pushing the common currency below the 1.10 level. The GBP traded higher after PM Johnson suffered yet another major blow when the Supreme court ruled the prorogation of parliament was unlawful. As Johnson appears to be unwilling to step down, it seems the only way out of this would be new elections. The CAD is likely to remain subdued as well since oil prices declined further after U.S. President Donald Trump doused recent optimism over China-U.S. trade talks and reignited concerns about global economic growth.
3. Oil Prices Dip, Gold at Multi-Year High
Oil prices fell on Wednesday for a second day on worries that fuel demand could fall as the U.S./China trade spat reignited which was coupled with a set of weak US data. Brent and Crude futures traded more than 1 per cent lower as of 7:45 GMT this morning. Gold benefited from all the negative developments this morning firming above the $1530 mark and is set to potentially reach another multi-year high.
4. Bitcoin Free Falls Amid Broader Crypto Slump
Bitcoin lost enormously amid a mysterious broader crypto-selloff during which more than $30 billion has been dumped from crypto assets. Analysts attribute the sudden bear trend to the lower than expected demand in the Bakkt future launch and already weakening technicals of BTC that had been showing for a while. If BTC manages to trade back to the 9k level this could take off some pressure, however, a failure could quickly push it down to 7k.
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Sources:
*FXStreet Sep 25, 2019 03:07 AM ET
**Reuters Sep 25, 2019 3:53 AM ET
***CNBC Sep 25, 2019 2:48 AM ET
****Seeking Alpha Sep 25, 2019 7:33 AM ET
