Tech giants shine through chaos

Tech giants shine through chaos

The week kicked off with a bang as Gold charged through the 2011 record high of $1921 on Monday amid Dollar weakness, negative real yields and US-China tensions. Interestingly, global equities pushed higher despite Gold prices making history as investors weighed expectations for another U.S. stimulus package against the coronavirus menace. King Dollar was beaten black and blue this week, depreciating against every G10 currency and experiencing its worst monthly decline in ten years. As doubts mount over the pace of US economic recovery in the face of rising coronavirus cases and pre-election jitters kick in, the Dollar could remain unloved and depressed. In our mid-week technical outlook, we discussed the possibility of the Dollar Index (DXY) slipping below the 93.00 support level. Prices were trading around 92.80 on Friday afternoon. As widely expected, the Federal Reserve held interest rates steady in July. However, the central bank left investors feeling uneasy after warning about the fate of the economy depending ‘significantly on the course of the virus’. To worsen matters, the US economy shrunk the most in post-war history by contracting by 32.9% in the second quarter of 2020. On the bright side, four of the largest US technology companies announced colossal earnings, against the backdrop of slowing global growth and instability caused by COVID-19. Apple’s revenues defied expectations, rising 11% to a new record in Q2 despite the disruptions and store closures. Amazon’s revenues were breathtaking, increasing by a whopping 40% as consumers around the world turned to ...
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