Global markets are trading mixed on Tuesday as investors are concerned about the increasing number of COVID infections. Ireland and Wales became the first countries on the continent to re-enter lockdown as the number of people who have died from Covid-19 in Europe passed 250,000. Ireland’s total COVID-19 cases confirmed since the crisis began to have just topped 50,000 — a quarter this month alone. Infections are exceeding 260 per 100,000 people over the past two weeks.
Wall Street ended lower on Monday due to the lack of stimulus measures in the US. The Dow Jones Industrial Average fell 1.44%, the S&P 500 dropped 1.63% and the Nasdaq saw a steady decline of 1.65%.
Crude oil prices ended lower on Monday as investors' concerns about fuel demand recovery as rising coronavirus cases led to renewed restrictions in several countries across the globe.
In the currency market, The British pound trades slightly lower on post-Brexit uncertainty. The UK government said that talks with Chief EU Negotiator Michel Barnier were constructive, but there was still no basis to resume official negotiations. Meanwhile, the UK PM spokesman warned: The UK continues to believe there is no basis to resume talks unless there is a fundamental change of approach from the EU.
Gold price trading lower on fading hopes for a pre-election US stimulus. US house speaker Pelosi’s spokesman said she held talks with treasury secretary Steven Mnuchin Monday and would do so again Tuesday.
On Monday, US Federal Reserve Chairman, Jerome Powell said “We do think it’s more important to get it right than to be first and getting it right means that we not only look at the potential benefits of a central bank digital currencies (CBDC) but also the potential risks,”
On the earnings front, IBM (NYSE: IBM) shares fell more than 2% after-hours trading on Monday after the company Q3 revenue reported a 2.5% decrease from the prior year.
On Tuesday, during the Asian session, the reserve bank of Australia released the last meeting minutes. RBA said its monetary policy tools have become more complex in supporting the economy through the pandemic. and the bank sees a need to further support the economy through various channels.
Moving ahead to the North American session the important economic events to watch the U.S. Building Permits, Housing Starts, and Fed's Quarles speech.
Globally, the number of people infected with the coronavirus across the world surpassed 40.4 million, of which at least 1.11 million people have died and 27.7 million have recovered, according to data released by the Johns Hopkins University.
EUR/USD: The currency pair climbed to a fresh weekly high of 1.1815 boosted by the weak dollar.
The important levels to watch for today: Support- 1.1790 and 1.1760 Resistance- 1.1820 and 1.1840.
GOLD: The yellow metal trades above $1900 on Tuesday after the price fell to a fresh weekly low of $1894 during the previous session.
The important levels to watch for today: Support- 1900 and 1890 Resistance- 1912 and 1918.
Quote of the day: Remember, your goal is to trade well, not to trade often- Alexander Elder.