- European indexes finished the week higher
- US100 and US500 hit new record highs
- Mixed PMI figures from the US
European indices ended a highly volatile week higher as upbeat earnings reports and the reassurance of the ECB to keep its ultra-accommodative stance lifted market moods. Central bank tweaked its guidance on Thursday, pledging to keep inflation rates at record-low levels until inflation "durably" reaches 2% target and retaining the pace of asset purchases programme at €20 billion per month. On the data front, the IHS Markit Eurozone Composite PMI rose to 60.6 in July, from 59.5 in the previous month and beating analysts' estimates of 60.0, a preliminary estimate showed. Today's reading pointed to the strongest rise in private sector activity since July 2000 as the bloc's economy continued to reopen from COVID-19 restrictions.
US indices extended gains during today's session, with both S&P 500 and Nasdaq 100 hitting new intraday records as strong earnings from tech stocks including Twitter and Snap made investors optimistic ahead of reports next week from the biggest names in the sector. On the data front, the Markit manufacturing PMI hit another record high of 63.1 in July, easily beating market forecasts, although price pressures and material shortages continue to weigh. US service sector growth slowed in July to 59.8 from 64.6 in the previous month and well below market expectations of 64.8 amid labor shortages and difficulties acquiring stock. Next week, traders will focus on the Fed's policy meeting which may provide hints on the next steps of the central bank and its view on the economic outlook.
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Create account Try a demo Download mobile app Download mobile appWTI crude rose 0.30% and is trading above $71.90 a barrel, while Brent is trading 0.22% higher around $73.95 a barrel. Elsewhere gold fell 0.30% and is testing psychological support at $ 1,800.00 / oz, while silver lost 1.00 % and is trading slightly above $25.00 /oz. Meanwhile the yield on the benchmark US 10-year Treasury note jumped to 1.3%, bouncing off the 5-month lows as investors turned to riskier assets. Bitcoin erased most of the early gains and pulled back towards support at $32,000.
NZDUSD pair recently bounced off the major support at 0.6910 which is marked with the lower limit of the 1:1 structure and is currently approaching a downward trendline. If buyers manage to break higher then upward move may accelerate towards major resistance at 0.7121 which coincides with 50 SMA (green line) and 200 SMA (red line). New Zealand's trade balance data, which will be released shortly after the start of trading on Monday, could trigger some price movements on the pair.Source: xStation5
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