In terms of the stock markets, this week it will be worth paying attention to the big tech giants such as Google, Facebook, and Apple. The reason for this is because the European Union is looking to introduce new regulations in the tech sector to break down the monopoly of giant companies and improve competition rules.
In addition, Apple is also in focus due to the upcoming launch event tomorrow, which will cause an increase in volatility of the company’s stock price.
All in all, today stock indices are most likely to incur losses, especially considering the lack of progress in stimulus talks in the United States.
Speaking of which, at this point investors have no hope to see the new stimulus bill implemented before the US presidential election in November. Trump’s Republican administration keeps refusing the House of Representatives’ plan due it being too generous.
If Biden wins the election, however, and if the Democtatic Party takes more Senate seats, it will be possible to see robust stimulus packages soon. Should Trump get re-elected, the battle for the amount of stimulus will most likely continue.
Nevertheless, lawmakers in the US right now appear more concerned with filling in the empty seat on the Supreme Court. Trump’s proposed candidate for the position, conservative-leaning Justice Amy Corey Barrett, is going to be the subject of many hearings in the upcoming days.
One major Forex development today is that China once again reined in the yuan, worried that its rapid appreciation over the past weeks is harmful to international trade. Thus, the People’s Bank of China changes its rules regarding the yuan, helping it weaken slightly.
Oil prices today are also trading downward as the recent supply cuts have been resolved. The danger of Hurricane Delta seems to have been averted; Libya is also restarting its oil extraction process. This pushed the Brent to $42.28, while the WTI slid to $39.97.
