On the foreign exchange market, the dollar index (which measures its evolution against a basket of 6 currencies) fell on Tuesday by 0.36% to 93.09 points, while the euro advanced 0.5% to $1.1825. In the U.S. bond market, the yield on the 10-year government bond (T-Bond) recovered on Tuesday 2 basis points to 0.79%.
Oil rebounded on Tuesday, a day after an Opep meeting that merely confirmed the continuation of the agreement to control oil production. The November contract for U.S. light crude oil (WTI), which expired on Tuesday, rose 1.5% to $41.46 on the Nymex, while the Brent contract for delivery in December resumed 1.27% to $43.16.
Gold continued its bullish path, gaining 0.20% to $1,915.40 an ounce for the December futures contract on the Comex. The yellow metal has gained nearly 26% since the beginning of the year, taking advantage of the economic uncertainties linked to the health crisis and the extensive monetary and fiscal stimulus plans, which are anticipating a return to inflation in the medium term. Gold has also benefited from a bout of weaker dollar for the past two days, which has made buying raw materials cheaper for international buyers.
On the macro-economic front, housing starts exceeded expectations in the United States in September 2020, at 1.415 million, compared with 1.463 million consensus and after 1.388 million in August. Building permits also came out above consensus at 1.553 million, compared with 1.52 million market consensus and after 1.476 million in August.
After Europe, coronavirus accelerates in the United States
On the health front, the coronavirus pandemic continues to grow, threatening to weigh on the economic recovery, particularly in Europe, where restrictions are increasing in an attempt to curb the spread of the virus. Ireland and Wales have announced containments of their populations, and France last week adopted a curfew in 9 metropolises including Paris and its region for at least 4 weeks.
In the United States, the number of coronavirus cases has soared since the beginning of September, from an average of 34,000 daily cases to more than 58,000 in the last 8 days, according to statistics from the Covid Tracking Project, as cited by the ‘CNN’ channel. In 14 states in the 50 U.S. states, the number of hospitalizations has reached record levels since the beginning of the pandemic, including in the Midwest, the Great Plains and some western states. According to Johns Hopkins University, more than 40 million confirmed cases of the new coronavirus have now been recorded worldwide since its emergence, including 8.16 million in the United States, where the 220,000-death mark has now been surpassed.