World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


European Stocks Set To Move Higher

The European and U.S. futures are trading higher as traders are picking up on positive momentum. There is no doubt that the primary focus among investors and traders is going to remain on Donald Trump’s health this week. Any news about the improvement of his health is likely to bring relief to markets. This is because it eliminates the uncertainty in relation to the U.S. election as speculators believe that if Trump does not recover in time, there is a possibility of delay in the U.S. presidential election. Over the weekend, the headlines have indicated that Trump’s health has improved; if it continues like this, then we should see some tweets from the president.

Week Ahead

As for the week ahead, investors will also be looking for positive news on the second stimulus package. Last week, Nancy Pelosi, the House Speaker, asked airlines not to furlough their employees as more support is imminent. We saw some serious gains for U.S. airlines such as American Airlines and United. The U.S. airline sector is likely to remain highly volatile this week, and if the second stimulus aid package becomes a reality, we will not only see the airline stocks skyrocketing, but the U.S. stock market will also rise.

U.S. Economic Data

The U.S. economic data has confirmed that the economic conditions are deteriorating on Friday as the U.S. non-farm payroll report was much weaker than the market expectations. The U.S. economy created only 661K jobs last month, which was substantially lower than the previous reading. The reading for the previous month was 1.37 million. In addition to this, we also saw weakness creeping in the average hourly earnings growth; it slowed to 0.1% from 0.3%. However, there was some silver lining in this data, and that was in the U.S. unemployment rate, which dropped further; it continued its downward trend. The unemployment rate dropped to 7.9% from the previous reading of 8.4%. The forecast for the unemployment rate was 8.2%.


In terms of currencies, we saw the dollar index losing more momentum on Friday. The dollar fell against all the major forex pairs, such as the Euro-dollar and the Sterling-dollar. However, the upward trend for the Euro-dollar pair reversed its direction fairly rapidly, and it seems like the 1.1759 remains a major resistance for the Euro-dollar pair.

Coronavirus Lockdown

Overall, the regional lockdowns remain a concern for the global equity market. On Friday, we saw a lockdown in Madrid. New restrictive measures are also likely to take place in Paris. The governments in these countries are trying to circuit break the surge in coronavirus. But all of this is coming at a massive cost as the capacity for restaurants, shops and gyms and other public places are reduced. Pairs could see complete closure of restaurants and bars as the city is already at the maximum Covid-19 alert, and if such a situation does take place, it means more economic pain for the French economy.

© Scoop Media

World Headlines


UN News: UN Strongly Condemns Knife Attack Inside Nice Church Which Left Three Dead

The UN Secretary-General on Thursday strongly condemned a knife attack inside a French church in the southern French city of Nice, which reportedly left three worshippers dead. In a statement released by his Spokesperson, António Guterres extended his ... More>>

ALRANZ: Denounces US Senate Confirmation Of Judge Barrett

ALRANZ Abortion Rights Aotearoa denounces the US Senate’s confirmation of Judge Amy Coney Barrett to the Supreme Court seat formerly held by Justice Ruth Bader Ginsberg. “This action demonstrates the rank hypocrisy of the once-respected upper chamber ... More>>

UN News: Millions Affected As Devastating Typhoon Strikes Viet Nam

A major typhoon has struck central Viet Nam, affecting millions of people – including about 2.5 million children – in a region already reeling from the effects of severe floods, according to UN agencies in the country. There are also reports that 174 ... More>>

Reporters Without Borders: Julian Assange’s Extradition Hearing Marred By Barriers To Open Justice

After monitoring four weeks of evidence in the US extradition proceedings against Wikileaks publisher Julian Assange, Reporters Without Borders (RSF) reiterates concern regarding the targeting of Assange for his contributions to journalism, and calls ... More>>