The dollar is marginally lower against the euro and the pound
The Wall Street stock market rallied on Monday after four weeks of declines. House Democrats released a $2.2-trillion proposal to extend support to the U.S. economy amid the ongoing coronavirus pandemic. The Dow closed 1.5%, the S&P 500 climbed 1.6%, and the Nasdaq Composite finished 1.9% higher. HSBC Holdings Plc gained nearly 9% after its biggest shareholder raised its stake.
Today in Asia, stocks were mixed as risk sentiment deteriorated again as investors looked ahead to a debate between President Donald Trump and Joe Biden. The Shanghai Composite in China gained 0.2% after reports that Chinese leaders will support a lowered economic-growth forecast for the next five years, citing the global pandemic and trade tensions with the U.S. Hong Kong’s Hang Seng index dipped 0.85%, Japan’s Nikkei 225 gained just 0.11%, and Australia’s S&P/ASX 200 finished unchanged on Tuesday.
European equities opened marginally lower amid lingering concerns about the economic impact of a second coronavirus wave. The upcoming Brexit talks add to a cautious tone in the markets. The German DAX 30 slipped 0.64%, the UK’s FTSE 100 lost 0.77%, and CAC 40 in France shed 0.42%.
Meanwhile, the dollar is marginally lower against the euro and the pound while USDJPY has reentered the positive territory after some consolidation seen on Monday. EURUSD remains under the 1.17 handle despite the bullish bias, struggling to stage a more robust recovery amid rising coronavirus cases in Europe. Later in the day, fresh economic data out of the Eurozone, Germany, and the United States could affect short-term dynamics in the EURUSD pair.
Oil prices are back under pressure after yesterday’s rally to the $43 handle that acted as resistance and triggered a retreat. Brent crude continues to follow global market sentiment that remains unstable due to economic and political uncertainty. Despite the pressure has eased in recent trading, downside risks continue to persist in the oil market.