ZFX: Markets was still choppy amid cautious sentiment
Investors continued to digest those variables these days, making markets a bit choppy last Friday. It is reported that SoftBank Group is reconsidering its trading strategy, triggering sell-off pressure over the tech stocks once again. However, the Dow rose nearly 0.5%.
Without big news, the UK-EU Brexit crisis was the major concern among investors. In view of the recent actions by the UK side, EU officials have stated that the European Parliament will not make any deal with the UK regarding the trading agreement. Unless the UK withdraws the “Internal Market Bill”, which is deemed as a violation of the Brexit agreement, the EU is ready to a “Hard Brexit”.
The recent Sterling has become key focus of FX market as investors are worried about no deal situation, causing pressure on the Sterling. The GBP/USD dropped to 1.28 level, setting a clear downtrend these days against the dollar.
On the other hand, the latest policy direction of the ECB is not as dovish as expected, supporting the Euro for a third day advance against the dollar. The ECB hinted that it would not overreact to, or so called intervene, the recent fast appreciation of the Euro.
On Monday, the Asian stock markets were generally trading higher as the sentiment improved and the futures of those US indexes were doing good. Although the global pandemic is still severe, with more than 29 million confirmed cases, more than 920000 deaths, the restart of the vaccine trials by AstraZeneca and Oxford University in the UK boosts optimism.
ZFX analyst Jacob Leung said that, last week the market was a bit speculative, causing ups and downs and sparking cautious sentiment. Currently, we can’t see any material change so that we can’t expect the end of the market adjustment.
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.