Stocks continue lower on Tuesday

By Peter Bukov|

Published: September 22 2020, 10:52 GMT+0

Stocks continue lower on Tuesday


Yesterday’s sharp losses (although cut considerably in the last hour of US trading) continued on Tuesday, and market indices were seen half a percent lower ahead of the London session.

A fresh Covid-19 outbreak in Europe is increasing fears of more new lockdowns on the continent, with the UK due to announce new restrictions on bars and restaurants later Tuesday. 

Therefore, investors are again starting to be nervous as the COVID 2.0 global slowdown could occur pretty soon. Moreover, the major central banks said they wouldn’t provide fresh stimulus soon, which could also be bearish for the way overbought equities.

Later in the day, the US existing home sales are due, along with the EU consumer confidence data. These numbers rarely cause any volatility in the financial markets. 

Elsewhere, the USD was seen strengthening notably, and the EURUSD pair is falling toward 1.17, which was putting pressure on the precious metals. Gold is now trading at around 1,900 USD, down 50 USD in a couple of days, while silver plummeted 10% this week alone, now seen near 24 USD.

The WTI oil plunged as well and is now trading below the psychological 40 USD threshold.