Market News
ZFX: Nasdaq once again dragged down the market sentiment - Zeal Capital Market

ZFX: Nasdaq once again dragged down the market sentiment

18-09-2020 09:04

Investors are still digesting those uncertainties in markets after the FOMC meeting. With the different views of market analysis, profit taking activities were dominated on Thursday, resulting the drop of all three major Wall Street indexes. The Dow once fell nearly 400 points and the tech stocks again were under sell-off pressure which lost over 1.2%.

The renewed pressure of the tech stocks in the Wall Street hurt the sentiment, however, Asia-Pacific stock markets were mostly higher on Friday. Traders are looking forward about the TikTok transaction, and the slip of the greenback are supporting risk appetite.

But, the European Stock markets are opening lower, as the resurgences of coronavirus pandemic added fears of another lockdown measures in those regions. The WHO warned that the situation is “very serious”, further triggering the concerns over the economic recovery of the euro zone. The total confirmed cases of Covid-19 have now passed 30 million worldwide, with more than 940000 deaths.

GBP/USD’s move, with a very volatile night, was the focus in FX. As the BOE hinted the potential implementation of negative interest rates, the Sterling sharply dropped to the low of 1.2864 on Thursday. Afterward, it was reported that the EU-UK trade deal was still possible, as the comment from the European Commission President Ursula Von der Leyen, boosting the Sterling back to 1.3 mark.

ZFX analyst Jacob Leung said that, the uncertainty is still existed. The potential “Hard” Brexit Crisis may still be a very bearish factor over the Pound, putting a sell-off pressure above 1.3 level.

Of course, the dollar was not that good as well, giving up all the gain after FOMC. The dollar index broke 93 level again. Although the Fed upgraded its 2020 GDP forecast, the gloomy US figures on Thursday dampened the investor sentiment.

ZFX analyst Jacob Leung said that, the market may be just no direction at all, and we can see the Thursday’s moves were a bit “diverged”. Each market was quite fluctuated, but with a low correlation, no matter timing or volatility. Pay attention that the technical analysis trading strategies may not work under such condition.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.