Australian Dollar

Risk sentiment remains tenuous across the North Atlantic overnight with Wall Street stumbling and European stocks almost in full retreat as the triple whammy of COVID, Brexit and the upcoming US elections weigh on markets.

Risk sentiment is generally solid today here in Asia with mainland Chinese shares the only fly in the ointment as Yuan contineus to advance.

Corss-posted from FTAlphaville: A European Central Bank research paper on the feasibility of the digital euro has garnered a lot of attention over the past couple of weeks.

With less than two weeks to go until the US elections, risk markets are still swayed by any hopium around a further stimulus package from Congress, with further talks overnight pushing markets and then post-close futures this morning.

Risk sentiment is very wobbly today here in Asia with Chinese shares just holding on to scratch sessions while the rest of the region sells off slightly in response to the harsher falls on Wall Street overnight.

The lack of any economic reports and any action of further stimulus measures from the US sent Wall Street and other risk markets lower overnight, as we head into the usually volatile late October period leading up to the US presidential election.

As the trading week starts again, risk sentiment has finally found some support outside China, which had to absorb the latest declining GDP print.

Back in 2016, Australian economics titan, Tim Toohey, forecast a new Australian boom: Goldman Sachs has upgraded its Australian dollar and economic growth forecasts.

Via the FT: Europe’s economy is sliding towards a double-dip recession, with economists warning that rising coronavirus infections and fresh government restrictions on people’s movement are likely to cut short the region’s recent recovery.

Wall Street finished Friday night with a fizzer, despite a very strong US retail sales print with European markets putting in a better result.

DXY eased Friday night: Australian dollar was weak anyway: Gold too: And oil: Metals are schizoid: Miners are trending lower: EM stocks popped: Junk too: Treasuries were sold: As stocks fell a bit: There was the usual fiscal scuttlebutt to be ignored in the US.

As the trading week comes to an end, risk sentiment continues to slide here in Asia, with Chinese shares the exception with small lifts on the mainland.

Wall Street has been in retreat for three days in a row now, as risk sentiment slowly catches up to the out of control COVID cases emerging in Europe and the US as they go into their colder seasons.

DXY was up last night: Australian dollar got belted after the RBA awakening: Gold held on: Oil eased: Metals were confused: Miners fell: EM stocks too: As the junk siren went off again: Treasuries eased: Aussie bonds were red hot: Stocks fell: Westpac has the data: Event Wrap U.S.

Risk sentiment continues to slide here in Asia, except local stocks which took the headline fall in the latest unemployment figures at face value.

Risk sentiment remains subdued with hopium around more US fiscal stimulus fading, sending Wall Street lower while the USD retreated slightly, mainly against a resurgent Pound Sterling as Euro and Aussie dollar remain depressed.

Risk is sliding back here in Asia, in line with the reversal on Wall Street overnight, with Chinese shares falling back the sharpest.

Another solid day on stock markets with rally on Wall Street translated into gains across the region, although Chinese shares are stumbling going into the close.

Global risk sentiment is bouncing back with an unfettered Wall Street ready to accept any President post-November – as long as they have nice juicy corporate stimulus ready to go – and the return of mainland Chinese traders after a week long holiday.