• Dow Jones is trying to erase 2020 losses
• Number of COVID-19 cases continue to rise in Europe
European indices finished today's session mostly lower as disappointing German consumer morale figures and France's household spending data raised concerns regarding Europe's economic recovery. At the same time, investors fear that rising number of new COVID-19 infections may result in the introduction of additional restrictions, after face masks became mandatory in Paris. Meanwhile, BoE Governor Bailey delivered a speech at the virtual Jackson Hole conference, however he did not provide much detail about short-term policy responses or his view of the UK economic situation. Bailey said that the BoE is not out of ammunition and that other tools might be used, including the possibility of negative rates. He also announced that central bank is not planning to tighten monetary policy until there was clear evidence of sustained economic recovery. During today's session DAX 30 dropped 0.5%, the FTSE 100 fell 0.6% and the CAC 40 finished 0.3% lower, while the FTSE MIB closed flat and the IBEX 35 rose 0.6%. For the week, the DAX 30 increased 2.1%, the CAC 40 and IBEX 35 both gained 2.2% and the FTSE MIB climbed 0.7%, while the FTSE 100 fell 0.6%.
Meanwhile US indices are trading higher. The Dow Jones is on track to record the 4th straight session of gains. Meanwhile, the S&P 500 hit another record high for the 5th straight day and the Nasdaq rose 0.5%. Investors digest Fed's new monetary policy framework which allows a more flexible inflation target, meaning the Fed can leave rates lower for a longer period despite rising inflation. Data on Friday showed, both consumer spending and income came in above analysts' forecasts and Michigan consumer sentiment report for August was revised higher. On the week, both the Dow and the Nasdaq are on the track to gain more than 2% while the S&P 500 is expected to be up 2.5%, its fifth straight week of gains for the first time this year.
Gold prices jumped more than 1.9% to around $1,968 an ounce, while silver gained more than 1.7% to around $27.5 an ounce on Friday, reversing losses in the prior session.
Next week, market attention will focus on data from the US labor market, the ADP report will be released on Wednesday, and the NFP on Friday. Moreover, investors will get to know ISM indices readings from the US and German factory orders data.
USDCHF - during today's session price break above the major resistance level at 0.9056, however buyers failed to uphold momentum and price pulled back. Should downbeat moods prevail, support 0.9010 may come into play. Source: xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
