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First Plus Market Update 1H September 2020

1H September Global Market Recap

 

1st September 2020 – 15th September 2020

 

 

A wave of selling pressure rippled across the US and China stock markets as investors fled the overheated tech stocks which fueled a historic 5-month rally. The stronger than expected activity data in China and vaccine optimism supported investor sentiment, stocks in both markets claw back strength after two weeks of selloffs. Stocks were on course for a cautious start this week as investors awaited the Federal Reserve policy meeting, on expectations that the Fed would stick with its supportive policy stance. 

Various countries CDS index has remained relatively stable in the month of September, showing signs of increased confidence in the recovery of the bond market. China's yuan surged to 16-month high on economic data while the dollar dropped to a two-week low versus the yen on expectations that the Federal Reserve will keep its rate lower for longer.

Oil prices tumbled to their lowest since June earlier this month amid concerns over the future of oil demand before they recovered slightly in the second week of September. WTI crude is down 9.5% and Brent crude fell 9% this month, being the worst performers among commodities. All commodities surged this week on the back of positive data showing China’s economic recovery from the coronavirus crisis is gathering strength.