How to start the week: analytics and forecasts — 07.09.2020

Fundamental analysis and forecasts for the future

The UK remains difficult to find compromise in trade negotiations with European Union.


Economic calendar

23:50 UTC

Japan’s Q2 GDP report will be published. The indicator is expected to fall by 0%. If the real data is lower, the JPY may come under pressure.

Assets for trading: EUR / JPY, USD / JPY


Must know

The alleged poisoning of Russian politician opposition leader Alexei Navalny is becoming an excuse not only for renewed talks about new sanctions against Moscow, but also for Europe’s refusal of Russian gas.

The Microsoft-TikTok deal could be in jeopardy as the Chinese authorities issued new rules to protect intellectual property.

Australia’s GDP in the second quarter declined by 7%, which was the worst result on record. Against this backdrop, the Australian currency has completed a winning streak of a bullish trend.

US Treasury Secretary Stephen Mnuchin spoke about the need to adopt a new package of fiscal stimuli to support the country’s economy. However, Republicans and Democrats have never made progress on how much aid should be allocated.

India has blocked 118 Chinese apps that authorities believe threaten national security. These include the search engine Baidu, as well as the Ant payment service of the Alipay group.


A fundamental view


Microsoft CEO Satya Nadella sold 83,572 shares of the company on September 1. A major insider deal could catch the attention of investors who step in to follow the lead of a Microsoft executive.


Deutsche Bank advises buying JPMorgan shares. In addition, analysts raised their growth target to $115. Other positive news for JPMorgan was the imminent acquisition of a stake in a Chinese investment company, which will allow the bank to enter the financial sector of China.


It is possible that the economic situation in Australia will continue to deteriorate. The latest data alerted investors, as the country has not seen such a drop in GDP. Meanwhile, authorities are trying to curb the COVID-19 epidemic, but incidence rates hit an eight-day high by the end of last week.


The relationship with recent economic partner China also leaves much to be desired. Beijing has already launched an antitrust investigation against wine exporters and has suspended the import of barley from one of the Australian suppliers. All this is also putting pressure on the Australian economy.


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