Here is what you need to know on Wednesday, September 9:
The American dollar remains king, ending the day up against most major rivals, except those considered safe havens, which anyway posted limited intraday gains.
Brexit once again led the way higher for the greenback. UK PM Johnson’s spokesman said this Tuesday that, while the government still thinks a deal is possible, the EU needs to be more realistic. Concerns were exacerbated by news that the head of the UK’s legal department, Jonathan Jones, quit after PM Johnson proposed to row back on parts of the Withdrawal Agreement relating to Northern Ireland.
Wall Street had another rough day, down in the first trading day of the week as the rout in tech shares continued. The DJIA and the S&P lost over 2%, while the Nasdaq ended down over 3.5%. The dismal mood exacerbated demand for government bonds, which in turn resulted in falling US Treasury yields.
In between, tensions in the US Congress mounted. Comments from House Speaker, Pelosi and Senate Majority Leader Mitch McConnell, regarding an aid package further dented the market’s sentiment. Republicans will put in the table a $300B bill, which is far less than what Democrats are seeking. Pelosi said that such a small package is an insult to American people.
Gold collapsed on dollar’s demand, bottoming at $1,906 a troy ounce. The metal, however, bounced sharply from the level to settle around 1,930. Crude oil prices, in the meantime, fell to fresh 3-month lows with WTI settling at $37 a barrel.
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