Trading Plan – Monday 5th October 2020: Risk-on as Trump gets Covid-19

Mark NugentOct 2020, Trading Plan

Trading Plan – Monday 5th October 2020: Risk-on as Trump gets Covid-19

The big news over the weekend has been US President Trump’s covid-19 diagnosis. Amazingly, in the 48 hours between market closure on Friday night and the Sunday night open, we have seen the diagnosis, two substantial but puzzling doctor-led press conferences, and a Trump public appearance, albeit from the inside of a bomb-proof car.

It seems pretty clear to me that Trump’s infection has been stage managed to minimise the impact on the stock market and it has worked. US equities are not performing as well as the other major global indices, but they are up.

Further bolstering the positive risk tone, Speaker Nancy Pelosi is making positive noises about a covid relief package. This is important because this package is the fiscal part of the jigsaw that complements the monetary actions being taken by the Fed.

Elsewhere we have the UK and the EU today beginning 11 days of intensive negotiations aimed at finding a trade agreement before UK PM Johnson’s deadline of October 15th.

I’ll be back on Wednesday.

Happy trading.

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