Pre-Market Review
Markets Did Not React to Protests

Posted by James Hughes -
Scope Markets

Unrest continued across the US last night as protestors defied curfews in many cities. President Trump yet again misjudged the mood of the American people. He tweeted that he had done more for the black community than any other president since Lincoln. He also mentioned that the “BEST IS YET TO COME”. This comes after Trump authorised the use of tear gas to move crowds in front of a church for posing. Markets continue to ignore the protests though.

Markets remain defiant, and traders are still buying into the rally on Wall Street. Historically, unrest such as the most recent one did not get the attention of the equity markets. It seems like the case again. Instead, investors continue to focus on the reopening of the economy, and how quickly that will affect the bottom line.

Markets test the Fed once again

The biggest reason markets remain in a buoyant mood is because of the Fed stimulus pumped into the economy. The Fed has already cut interest rates to zero and promised to add more stimulus if the economy needs it. The balance sheet, which the Fed worked intensely to reduce, now stands at an eye-watering $7.1trillion.

The Fed’s presence in the market has enabled companies to restructure debt at incredibly low rates. Meaning major corporations have managed to build cash stockpiles to fight their way through this crisis (COIVD-19 pandemic). It seems that for traders, this outweighs the negativity and political uncertainty that now clouds other areas of the US.

Later today, we will get a further reading concerning lost jobs in May in the private sector. The ADP payroll could show that another 9 million people became unemployed. This starts a busy few days for jobs data. On Thursday the weekly jobless claims reading will be out. On Friday will have the full jobs report including the non-farm payroll. Today we will also see a raft of data out of Europe in the form of services PMI’s. Later we will get the ISM non-Manufacturing PMI from the States.

Today will also see the first-rate setting meeting for new Bank of Canada Governor Tiff Macklem. However, no significant changes are in sight. The Loonie has rallied strongly over the last couple of days, especially against the greenback. However, any mention of negative rates, or further QE will be critical in that performance continuing. Despite a GDP contraction of over 7%, the economic outlook has been relatively upbeat for the coming months in Canada.

Share this article:

Disclaimer: This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regardsto past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Payment Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize


+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

RS Global Ltd is authorized and regulated by the Financial Services Commission of Belize ("FSC") under the Securities Industry Act 2021 with registration number 000274/2.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2022 Scope Markets. All Rights Reserved.