Weekly News Summary for November 6 to 12, 2020
Friday, Nov.6, 2020: Gold Hits 7-week High as the US Dollar Falls
Gold reached its highest in seven weeks on Friday, as the possibility of a looser US fiscal and monetary policy weighed on the dollar.
Gold futures gained 0.5% to $1,957.20 per ounce, while the US dollar index posted a two-month low of 92.263, having shed more than 2% against its largest trading partner in the week.
Monday, Nov. 9, 2020: Global Stocks at Record High on Policy Reset Hopes
Stock markets worldwide rose on hopes for a reflationary US fiscal policy, a continued loosening of monetary policy, and a less aggressive trade policy under the new administration.
Markets in China, Japan, and Europe strengthened between 1.5% and 2.5%, while the MSCI global equity index registered an all-time high.
Tuesday, Nov. 10, 2020: Stimulus Hope Weakens on McConnell’s Remarks
US Senate Majority Leader Mitch McConnell backed up President Donald Trump’s lawyers’ efforts to question the election result, with analysts seeing the move as a potential threat to the prospect of having a fiscal stimulus package during the remaining days of the current Congress.
The US recorded more than 100,000 new COVID-19 cases for the fourth straight day on Monday, with increases in California, Texas, and New Mexico.
Wednesday, Nov. 11, 2020: Chinese Tech Giants Down on New Antitrust Policies
Shares of Chinese tech giants remained pressured on Wednesday, as the release of new antitrust policies by Beijing threatens to limit their activities in many ways, including their pricing method for the same product for different buyers.
Tencent Holdings Ltd. dropped 11% since the regulations were introduced, while Alibaba Group Holding Ltd.’s ADRs lost over 8% and received an additional 2% marked down in pre-market trade.
Thursday, Nov. 12, 2020: Weekly US Jobless Claims Fell to 7-month Low
Initial claims for unemployment benefits in the US were down to a seven-month low last week, but the decline rate has slowed, and further progress may be curbed due to the pandemic and lack of additional stimulus package.
The Labor Department stated on Thursday that jobless claims fell by 48,000 to 709,000 for the week ended November 7, lower than the 757,000 registered a week earlier, while weekly jobless claims have dropped from a peak of near 7 million at the end of March.