On Thursday, the Asian stocks halted its rally as the US-Sino tension and weak world economic data kept its momentum. However, the wait for the one more US economic package cushioned the market from falling, but the pressure on the dollar is evident as the Congress is yet to agree on the spending stimulus.
The US index, S & P 500 future, was steady but the European market seems not to follow the pattern with Euro STOXX 50 future plunge 0.4% and UK’s FTSE slump 0.6%. Moreover, Nikkei225, Japan’s market index, fell 0.5%.
Meanwhile, the AUD and the Australian market index, both, fell as the Aussie PM, Scott Morrison, estimated the unemployment to hike and the Victoria lockdown, due to COVID, cut the GDP growth by 2.5% in the 3Q of 2020. Moreover, US-China tensions boosted recently when the Trump administration is planning to ban “UNTRUSTED” Chinese apps like TikTok from the United States showed a negative effect on the prices of Tencent, Alibaba, and overall China market sentiments.
However, none of the dampening news was able to shake the traders and investors’ trust amid the hope for new US stimulus still alive. Meanwhile, the yellow metal, gold, is not in a mood to stop and topped the $2000 an ounce mark earlier.
US TIPS (Treasury Inflation-Protected Security) ten-year yield peaked a record low of -1.071% on Thursday, as the dollar still struggles against other currencies.