A cautious investor stance is maintained in the United States and world markets since President Donald Trump was diagnosed with the Covid19 amidst the spread of the virus in his circles, including his wife Melania last week.
Despite the positive statements of doctors regarding Trump’s health, more uncertainty has now shadowed the outlook for the US presidential election on November 3. Although Trump did not want to, he was taken to Walter Reed Military Hospital on the advice of doctors on Friday night. Trump, whose fever was rising, was given oxygen support on Friday according to Walter Reed doctors who hold daily press briefings.
As expectations for market volatility increase, investors rethink their bets for a long-term drop on the US dollar, which rose on Friday as US stocks declined.
Investors had previously been frightened by Trump’s refusal to commit to a peaceful transfer of power if he lost the November 3 election.
Stay tuned to Limit Markets’ social media accounts for the most up-to-date and instant information on Trump’s health.
RBA Rate Decision
The Reserve Bank of Australia (RBA) holds its monthly monetary policy meeting on Tuesday. The RBA is expected to keep interest rates at 0.25 percent.
On the same day, the Australian government will announce its annual budget, which is expected to include economic stimulus measures against the wave of new virus cases that has led to harsh socio-economic restrictions.
FOMC Meeting Minutes
Investors expect some clarity from the minutes of the US Federal Reserve’s mid-September monetary policy meeting up for release on Wednesday.
Fed Chairman Jay Powell previously said that the Fed will tolerate higher inflation rates. But investors are hungry for details on the bank’s future approach to interest rates and its bond-buying program.
The industrial production data to be released by Germany on Wednesday will provide an important outlook regarding the strength of the country’s recovery in August as foreign orders begin to arrive.
The UK’s quarterly gross domestic product, trade, and industrial product details will be released on Friday. Analysts predict an increase in GDP due to the government’s previously announced programs and stimulus.
On the same day, Japan will announce its quarterly GDP data.
While the US will release its trade data on Tuesday including import and export figures, China will announce the same figures the next day.
White House race
US Vice President Mike Pence will face Democratic VP candidate Kamala Harris at a television debate Wednesday.
The foreign ministers of the United States, Japan, India, and Australia, who form the Quad Group against communist China, are poised to meet this week in Tokyo. All four democratically ruled countries form a front against the military and technological rise of the totalitarian one-party People’s Republic of China whose commercial domination in the world and territorial claims in Asia and Pacific spook others.
US Secretary of State Mike Pompeo concluded a tour of southern Europe and set out to travel to East Asia on Sunday evening. Pompeo is scheduled to visit Japan on Tuesday. Pompeo will also visit other US allies South Korea and Mongolia.
UK Conservative conference
The ruling Conservative Party in the UK will hold its annual party conference online under Prime Minister Boris Johnson due to the ban on social gatherings.
Monday: US ISM Non-Manufacturing PMI (Sep)
Tuesday: China — National Day, RBA Interest Rate Decision, RBA Rate Statement, UK Construction PMI, US EIA Short-Term Energy Outlook, US JOLTs Job Openings
Wednesday: China — National Day, Canada Ivey PMI, US Crude Oil Inventories, US FOMC Meeting Minutes, US FOMC Statement
Thursday: China — National Day, ECB Monetary Policy Statement, US Initial Jobless Claims
Friday: Japan GDP, UK GDP, UK Manufacturing Production, UK Monthly GDP 3M/3M Change, Canada Employment Change