Global equity markets surged to open the new week. The big losses suffered in equity markets, over the last couple of weeks, have been virtually wiped out by the gains and the strong rebound closing out last week. One of the major triggers to the initial correction was the Banks, which had led the charge lower, due to adverse news surrounding possible illegal trading actions. The Banks led the rebound, as investors poured in to take advantage of the lower share prices, led by Chinese Insurer Ping An. The US Dallas Fed Manufacturing Index surged and US House Speaker announced talks for a further stimulus/bailout package, which would resume with the Trump administration.
The other major factor which triggered the mini-correction, was the resurgent virus, but mortality rates remain low as effective treatments and understanding of the nature of the beast, climb. The EUR rose to 1.1660, while the GBP jumped to 1.2840, despite the Bank of England endorsing negative interest rates. Economic releases were minimal and now attention in the US will focus on the Presidential Debate, which may be the most viewed in history.
Trade exposed commodity currencies were beneficiaries of the surge in confidence, as the safe haven US Dollar retreated. The NZD stabilized around 0.6550, while the AUD rebounded to 0.7070, still a way to go to regain lost ground over recent times.