ZFX: Renewed fears of the pandemic? Still tech stocks?

On Friday Asian session, the stock markets are overall following the momentum of Thursday’s night. The performances of the three major indexes on Wall Street were mixed, which the Dow dropped more than 300 points, while investors continually chased tech stocks.

ZFX analyst Jacob Leung said that, the pandemic concern may be one of the reasons of pushing funds to tech sectors, making Nasdaq remains the strongest. However, we can see the risk-off mode is now ready.

The decline in the stock markets triggered a rebound of the greenback. Investors are now worrying about the renewed lockdowns measure, which will obviously slow down the economic recovery. The dollar index was boosted to 96.8 level on Thursday, dragging down the oil prices and the gold price(below $1800).

On Friday, the greenback holds steady and Asian stocks generally drop. Investors resumed cautious as a record setting data showed more than 60,000 new coronavirus confirmed case across the US on Wednesday.

ZFX analyst Jacob Leung said that, it should be noticed that if there is sell-off pressure in gold market under the risk-averse sentiment, it may imply “cash” demand. If the dollar keeps rising, investors may unwind the current positions, sparking a volatile or considerable adjustment in the asset markets.

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