Global markets opened higher on Tuesday amid coronavirus scare rebounding to the positive territory after a week of poor performance.
The Reserve Bank of Australia (RBA) kept rates unchanged at 0.75% giving some temporary reprieve on the AUD as it gained 0.47% against the US dollar. According to Mark Lee, Equiti Market Analyst, the commodity-dependent Australian Dollar has been under selling pressure recently amid the Coronavirus epidemic.
Elsewhere, Asian stocks regained in early Tuesday trading with the Shanghai Composite going up 1.34% while NIKKEI225 was up 1.42%.
Furthermore, US stocks rose as investors bet on global economic resilience as fiscal and monetary policies diminished coronavirus impact. The Dow30 jumped 0.93% returning to the positive territory while the S&P500 jumped 1.02%.
Brent oil shrugged off Monday loses to gain 1.20% to trade at $54.75 per barrel. Officials at OPEC confirmed ongoing debate for more aggressive oil output cuts than previously considered. OPEC alludes that new data showed a deepening impact on global oil demand.
GBP came under pressure as PM Boris Johnson met with Michel Barnler, EU’s Chief negotiator, to outline post-Brexit relations after the 11 month transition period expires. Johnson rejected taking any rules from the EU to secure a trade agreement maintaining that they can pursue a deal on World Trade Organisation’s terms.