US President Donald Trump on Tuesday ordered a stop to negotiations with Democrats. He said he plans to pass a “major stimulus bill” if he is re-elected on Nov. 3.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.” tweeted the president.
"The president turned his back on you," Trump's Democratic rival, former Vice President Joe Biden.
Wall Street ended lower on Tuesday after Trump tweets he will delay stimulus talks. The S&P 500 fell 1.4%, while the Dow Jones Industrial Average dropped 1.3% and the Nasdaq Composite slid 1.6%. Meanwhile, Australian shares traded higher on Wednesday after the government released its budget, which contains billions in spending initiatives and tax cuts.
Crude oil prices trading lower on Wednesday after weaker-than-expected API inventory data and negative comments from US President Donald Trump. On the other hand, In Norway, the Lederne labor union said on Tuesday it will expand its ongoing oil strike from Oct. 10 unless a wage deal can be reached in the meantime. Six offshore oil and gas fields shut down on Monday as Lederne ramped up its strike, cutting the country’s output capacity by 8%.
In the currency market, the EURO slightly rebounded from the previous session lows. On Tuesday, European Central Bank (ECB) President Christine Lagarde said that Europe’s recovery looks more sluggish as the second wave of the pandemic knocks on the door.
Gold price trading lower ahead of FOMC minutes. During the previous session, the yellow metal fell after the US dollar rebounded from the two weeks low.
On the data front, German industrial production unexpectedly contracted 0.2% in August, compared to forecasts of a 1.5% rise.
Moving ahead today, the important events to watch:
US – Crude oil inventories: GMT – 14.30
US – FOMC meeting minutes: GMT – 18.00
The number of people infected with the coronavirus across the world surpassed 35.8 million, of which at least 1.04 million people have died and 24.98 million have recovered, according to data released by the Johns Hopkins University. Brazil has registered 41,906 new cases, the highest single-day number since September 11.
EUR/USD: The currency pair rebounded back to above 1.1750 after fell to a fresh weekly low of 1.1720 on Tuesday.
The important levels to watch for today: Support- 1.1720 and 1.1680 Resistance- 1.1780 and 1.1810.
GOLD: The yellow metal rebounded from early session losses. During the European session, the gold price climbed back to near $1900 zone.
The important levels to watch for today: Support- 1880 and 1875 Resistance- 1896 and 1905.
Quote of the day: If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks – John C Bogle.
Read more- https://gulfbrokers.com/en/daily-market-report-181