• Protests across several US cities
• Beijing paused some agricultural imports like soybeans from the US
Recently, positive sentiment dominates the global financial markets. After the weekend, the main stock indices continue to rise without paying attention to the recent bad news. The constantly increasing number of new coronavirus infections and the rising tensions between the US and China do not stop market bulls.
Europen closed in the green on Monday, French CAC40 and London FTSE 100 closed 1.5% higher, and Italian FTSE MIB added over 1.7%. The German stock index was closed today due to the holiday, but DAX futures managed to break above last week's highs at 11800 pts.
US indices are trading slightly higher as well, despite riots that occurred over the weekend. American journalist Charlie Gasparino said that ongoing protests could contribute to the adoption of a new stimulus package before the summer break. China today announced that state-owned companies are restricting imports of agricultural products from the United States, including soybeans. Soybean is obviously one of the major agricultural markets in the United States, but the market reaction was initially limited. During today's session, Nasdaq adds 0.40%, while S&P500 and Dow Jones are growing around 0.30%.
Weaker tone for the U.S. dollar was seen underpinning precious metals. The Dollar Index was down 0.48%. Gold prices managed to erase earlier losses to move higher. Gold is trading around $1737.00 an ounce. Meanwhile, silver futures rose 1.7%, at $18.815 an ounce. Silver futures on Friday posted a gain of nearly 24% for the month, the largest since 2011.
There is not much on the agenda tomorrow when it comes to macro releases. RBA Rate Statement will be the key release of the Asian session while Swiss Manufacturing PMI will be on watch during European trading hours. Apart from that, API Crude Oil Stock Change will be published in the evening.
GBPUSD is testing 1.248 resistance level in afternoon trading on Monday, its highest level since beginning of May, as the UK lifted some lockdown restrictions. From today schools, outdoor markets and car showrooms will be open. Meanwhile, investors await a fourth round of trade Brexit talks this week. Sterling had been recently under pressure on news that the Bank of England is considering negative interest rates. 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.
