The Covid-19 pandemic effects continue to drive total risk aversion in all markets. US equities closed down again on Friday and US futures hit “limit down” again this morning. Markets are on the back foot this morning due to the failure of the Trump administration’s $2 trillion fiscal stimulus package to get Senate approval last night. Chinese stocks are down while Japan’s Nikkei is 2.73% higher.
The Dollar is trading weaker at 1.0745 against the Euro, 1.1670 against the Pound and 109.90 against the Yen as markets await the stimulus package to pass through the Senate and the likelihood of a US recession. The Rand is weaker this morning as EM currencies get sold off again.
The Rand is trading at 17.7500 after having opened at 17.5375 earlier. The Ruble and Peso are being further hit in the lower Oil price which is at $26.05 this morning. Gold is largely unchanged at $1 495.00.