{"id":293372,"date":"2020-09-07T03:09:47","date_gmt":"2020-09-06T17:09:47","guid":{"rendered":"https:\/\/www.gomarketingteam.com\/articles\/tech-stocks-ecb-meeting-and-brexit-talks-in-focus\/"},"modified":"2021-02-19T12:13:27","modified_gmt":"2021-02-19T01:13:27","slug":"tech-stocks-ecb-meeting-and-brexit-talks-in-focus","status":"publish","type":"post","link":"https:\/\/www.gomarkets.com\/en\/weekly-summaries\/tech-stocks-ecb-meeting-and-brexit-talks-in-focus\/","title":{"rendered":"Tech Stocks, ECB Meeting and Brexit Talks in Focus"},"content":{"rendered":"

By Deepta Bolaky<\/strong>
\n\u00a0@DeeptaGOMarkets<\/a><\/p>\n

With a US public holiday on Monday, investors are gearing up for a muted start to the week. After <\/span>the sell-off i<\/span><\/a>n the global stock market last week, an environment of caution may prevail while investors continue to monitor economic updates to gauge the path of the global recovery.\u00a0<\/span><\/p>\n

September kicked off on a mixed note \u2013 global equities pulled from recent highs after a sell-off in the tech sector triggered a bloodbath in the stock market. Investors will likely remain on edge this week after major equities indices plunged the most in almost 3 months last week.\u00a0<\/span><\/p>\n

Central Bank Meetings<\/b><\/h4>\n

The European Central Bank (ECB) and Bank of Canada (BoC) will hold their policy meetings on Wednesday and Thursday respectively. The ECB meeting will be among the most important events for the week following last week\u2019s comments from the ECB chief economist, Philip Lane that Euro\u2019s recent appreciation \u201cmatters\u201d for monetary policy.\u00a0<\/span><\/p>\n

The immediate attention will be on Christine Lagarde\u2019s views on the Euro appreciation to see if her comments matched those of the chief economist. Moreover, investors will look for inflation and interest rates expectations. As per the recent statistics, inflation in the Eurozone has turned negative.\u00a0<\/span><\/p>\n

\u201cIn August 2020, a month in which COVID-19 containment measures continued to be lifted, Euro area annual inflation is expected to be -0.2%, down from 0.4% in July according to a flash estimate.\u201d<\/i><\/b><\/p>\n

Brexit Talks<\/b><\/h4>\n

Over the weekend, Brexit-related updates dominated headlines and there were no reassuring tones from Prime Minister Boris Johnson. Ahead of the 8th round of negotiations between the European Union and the United Kingdom which is scheduled to take place from Tuesday 8 September to Thursday 10 September 2020 in London, the Prime Minister threatened to walk away from trade-deal talks and reiterated that no-deal Brexit would be a \u201cgood outcome for the UK\u201d. It is also noted that the Prime Minister is drawing up legislation that may override the Brexit withdrawal agreement on Northern Ireland.<\/span><\/p>\n

GBP currency pairs might have a volatile ride this week as more updates will unfold during the negotiations process.\u00a0<\/span><\/p>\n

Key Economic Data to Watch<\/b><\/h4>\n

EZ and UK GDP and inflation data across Australia, the US and UK\u00a0<\/span><\/p>\n

will stand out as market participants will continue to monitor main lagging and leading indicators to see how the economy has changed and attempt to gauge where the economy is headed.<\/span><\/p>\n

Commodities<\/b><\/h4>\n
Gold<\/b><\/h5>\n

Last week was another volatile week for Gold. After reaching fresh record highs, the precious metal plunged and slipped the most in seven years last week. Gold reclaimed the $2,000 level as risk sentiment faltered on Tuesday earlier this week but failed to hold on to gains. As of writing, the XAUUSD pair is trading around the $1,933 level.<\/span><\/p>\n

Virus woes, US stimulus package, and geopolitical tensions are the current factors that could provide support to the haven asset.<\/span><\/p>\n

Key Events Ahead<\/strong><\/h4>\n
\n

Monday<\/b><\/p>\n

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