Pelosi rejects Trump proposal, Apple drops
U.S. indices fell on Tuesday as it was announced that Speaker of the House, Nancy Pelosi had rejected President Donald Trump’s latest proposal for a coronavirus stimulus package.
In explaining her decision, the Speaker stated that, “Tragically, the Trump proposal falls significantly short of what this pandemic and deep recession demands”.
The Dow Jones was down 0.54%, with the S&P 500 falling by 0.75%. The NASDAQ was flat, however Apple dropped 2.65% after running up on Monday as it launched the iPhone 12 and new 5.4 inch iPhone mini.
FTSE falls as UK Unemployment Rate rises
Earlier today, data released from the UK showed that the country’s unemployment rate had reached 4.5%, which is the highest in over three years, compared to 4.1% in the previous quarter.
The data, which was released by the Office for National Statistics, highlighted that the number of people registered as unemployed rose by the most since 2009, during the financial crisis. Redundancies rose by a record 114,000 in the last three months to a reading of 227,000.
As a result of this news, the FTSE 100 was down 0.53%.
OPEC again cuts oil demand forecast
Oil prices once again rose above $40 per barrel, despite OPEC cutting its 2021 demand forecast.
The cartel estimates that demand will rise by 6.54 million barrels per day next year, which is 80,000 bpd less than expected in August. The new figure will see demand come in at 96.84 million bpd.
The cut comes as global infections of COVID-19 are once again on the rise. Regarding the cuts, OPEC stated that “As this uncertainty looms large, amid a globally strong rise in infections, it is not expected that the considerable recovery in 3Q20 will continue into 4Q20 and in 2021”.
Quote of the day – “Short-term volatility is greatest at turning points and diminishes as a trend becomes established.”George Soros
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Senior Market Analyst