ZFX: Uncertainties stay in focus! Cautious investors are trading in a sensitive market
European stocks opened lower on Tuesday, following a mixed Asian session. Traders are still concerning various uncertainties, especially after an over 1% drop in Wall Street overnight.
Over these days, there were no new market watch in the financial market. Generally, markets were running in a ranging pattern, with no bullish or bearish driver dominated. Of course, the US election is the most eye-catching. The coming Presidential debate is the key focus this week on 22th Oct. ZFX analyst Jacob Leung said that, it would be a “super” battle as it is the last debate. The recent polls showed that Biden's support was weakened by the “email scandal＂of his son, Hunter Biden. Investors are paying close attention to the issues and how the coming polls is going.
On the other hand, talks of the new fiscal stimulus from Washington have no much progress at all. House Speaker Pelosi rejected Trump’s package unless the plan is pushed up to $2.2 trillion. However, even the Republicans would not support Trump’s idea and have proposed a package that is just about $500 billion in the Senate.
ZFX analyst Jacob Leung said that the market believes that both sides will not reach any deal before the election next month, as it is “part of the election”.
The UK-EU talks also weigh on market sentiment. Good news is that both sides have agreed to negotiate further, postponing so called “ deadline”. But, so far no meaningful outcome has been made. The EU insisted that the UK must make greater concessions, while Boris Johnson criticized the EU for refusing to negotiate seriously. The UK’s chief Brexit negotiator David Frost said there was “no basis” to deal with the EU unless fundamental changes were made. Some British officials have stated that the chance of a “Hard Brexit” becomes higher.
ZFX analyst Jacob Leung said that it is expected that investors would be very cautious this week under the mixed market with uncertainties. We should also be alerted that the coronavirus pandemic all over the world was worsening, with the total confirmed cases worldwide exceeded 40 million, with more than 1.1 million deaths.
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