ZuluTrade Blog

Market Daily Outlook - ECB Monetary Policy and US Politics lead the markets

Market View | Thursday, October 8, 2020 2:04 PM GMT

The positive sentiment still remains on equity markets just before the ECB monetary policy meeting and after the talks over the relief package to the airline industry.  Yesterday most US and EU indices had solid gains while they still look bullish today as well.

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On major US news, the latest poll by Quinnipiac University shows an 11% lead in Florida to Biden over Trump while 13% in Pennsylvania and 5% in Iowa respectively. In the meanwhile, Trump continues to use “hostile” wording against China due to Covid-19 as he promised that they going to pay for the damage caused by the pandemic. Elon Musk, CEO of Tesla, informed his employees that it is possible to produce 500.000 cars within 2020, which helped to boost the company’s share gains. 

On major EU-UK news,  Charles MIchel, ECB president, tweeted:

UK is already thinking of new measures for fighting the coronavirus spread as the new cases were increased to 14k per day

On global news, France, U.S., and Russia escalate their efforts to help Armenia and Azerbaijan stopping their war conflict in Nagorno-Karabakh by initiating talks in Geneva on Thursday. Samsung announced its highest profit in two years in the third quarter as it surged by 58%.

Reviewing the technical view, SPX500 closed above 50SMA in the daily timeframe and faces currently the latest major swing high at 3428. NAS100 is still in consolidation mode, though, the breakout of 11549 will potentially initiate the next bullish leg. 

SPX500 Daily

NAS100 Daily

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XAUUSD is ranging from $1877 (support) to the grey zone (resistance) and bias is still no clear.

XAUUSD 240min

USOil is rallying to the upside after testing 20EMA successfully as Hurricane Delta is forcing oil producers in the Gulf of Mexico to stop their operations once again. The grey zone acts a major resistance zone for the participants. 

USOil 240m


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