Financial Market News 09.11.2020 Monday

DAX in Germany traded 1.9% higher, the CAC 40 in France rose 1.6%, while the U.K.'s FTSE index climbed 1.4%. Infineon (OTC:IFNNY) stock rose 3.4% after the German chipmaker offered up strong guidance, forecasting that revenue would grow by nearly 23% in the year ahead. This has overshadowed a cut in its dividend. Societe Generale (OTC:SCGLY) stock rose 2.6% after the French bank announced plans to cut costs, including cutting 640 jobs in France, mainly at its investment-banking operations. Norwegian Air (OL:NORR) stock slumped over 20% after the Norwegian government said it will not provide additional financial support for the cash-strapped airline, leaving it again on the verge of bankruptcy.

Oil prices surged Monday, with Biden’s victory in the U.S. presidential race buoying risk appetites as traders look for a larger coronavirus relief package, offsetting worries about the impact on demand from a worsening pandemic. U.S. crude futures traded 2.3% higher at $37.99 a barrel, while the international benchmark Brent contract rose 1.9% to $40.20, recovering after losing 4% on Friday. Gold futures rose 0.3% to $1,958.10/oz, but remained on course for its biggest weekly gain since July.


GBP/USD faced rejection near the 1.3200 mark and witnessed a modest pullback on Monday. Comments by Ireland's Coveney revived no-deal Brexit fears and weighed on the British pound. A subdued USD price action helped limit the downside ahead of BoE Governor Bailey’s speech. EUR/USD advanced to 1.1890 retaining substantial gains at the end of the week as the US presidential election blurred pandemic chaos. The EUR/USD pair has the risk skewed to the upside. Further up sit the mid-August high at 1.1966 and the August peak at 1.2014. The dollar weakened in early European trade Monday, as traders looked to riskier currencies to play Joe Biden’s victory in the U.S. presidential election amid hope for more fiscal largesse and continued easy monetary policy. The Dollar Index was down 0.1% at 92.172, falling to its lowest level since early September. USD/JPY rose 0.2% to 103.50, while the risk sensitive AUD/USD rose 0.5% to 0.7290, a seven-week high.