Trump and Pence step in to talk up the current pandemic situation
GBP rallies as PM Boris Johnson admitted to hospital
Oil prices remain volatile with no clarity as to output cuts
Stocks Markets Rally
Monday morning saw a raft of buying across Asia and Europe with all major indices trading higher.
The German DAX index is leading the way higher with gains surpassing 4% into the US open. US index futures are all trading higher by about 3.8%, while the UK’s stock market is underperforming, up only 2.5%.
After a week of self-isolation due to a positive coronavirus test, British PM Boris Johnson was the first world leader to be admitted into a hospital in relation to his condition. The official position of the UK government is that he is still in charge.
GBP Higher Across the Board
Despite British PM Boris Johnson spending the night in hospital, the GBP rallied across the board in early European trading. Speculation about a softer stance between the EU and the UK in the upcoming trade t negotiations is rampant.
GBP traders are actively looking at the prospect that both sides of the channel have an intrinsic interest to insulate their economies from a preventable collapse in trade. While for the time being there are no tangible prospects for changes in the positions of both the UK and the EU, speculators are betting on positions shifting at some point down the line.
Commodity currencies also rallied, underpinned by the broader increase in risk appetite.
Oil Remains Volatile
Oil prices swung both ways as uncertainty around coordinated output cuts from OPEC and non-OPEC oil producers remains a key theme. Over the weekend, Russia and Saudi Arabia escalated tensions, leading oil to fall at the open. A meeting between major oil producers is expected tomorrow.
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