Morning wrap

  • US indices finished yesterday's session lower. S&P 500 dropped 0.78%, Dow Jones declined 0.41% and Nasdaq dipped 0.97%. On the other hand, Russell 2000 added 0.27%

  • Moods during the Asian session are poor. Nikkei and S&P/ASX 200 trade 0.9% lower, Kospier drops 1.6% and Chinese indices trade 1.5-2% lower. Hong Kong index drops over 5% as China plans to introduce new security laws in the city

  • Total number of confirmed coronavirus cases increased to almost 5.2 million. Death toll increased to 334.6 thousand while 2.08 million people recovered. Yesterday was the second day in a row with more than 100 thousand cases reported

  • Trump signalled that he won't lock US economy in case second wave of infections hits

  • China has set no new 2020 GDP growth target during a National People's Congress. Jobless rate is seen around 6% this year while budget deficit should exceed 3.6% of GDP

  • China warned that it will impose countermeasures in case the United States intervene in Hong Kong and Taiwan affairs

  • New Zealand is reportedly discussing direct cash handouts. However, discussions are still in early stage

  • Bank of Japan left interest rates unchanged during today's meeting. However, a new lending program aimed at small and mid-size companies was launched

  • Japan's CPI inflation slowed from 0.4% to 0.1% YoY in April

  • New Zealand's retail sales declined 0.7% QoQ in Q 2020 (exp. -1.5% QoQ)

  • Fitch affirmed Australia's rating at "AAA". However, outlook was lowered to negative

  • Oil is pulling back on risk-aversion spurring from possible China-US spat over Hong Kong. Industrial metals are pulling back. Gold gains slightly

  • JPY and USD lead while CAD, AUD and NZD lag the most

For the first time on the record, two back-to-back days with over 100 thousand new cases were reported. Source: worldometers, XTB Research

BREAKING: US Crude Stocks Rise more than expected
US Jobless Claims Top 2.1M
Coronavirus: market update
Economic calendar: Trump targets social media companies
Morning wrap
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.