Euphoria started during Asia trading hours
Global stocks rally, Nasdaq with new ATH
ISM Non-Manufacturing with solid gains in June
Monday started in a best possible way for global stocks as Chinese equities soared at an astonishing pace. Shanghai Composite finished the session 5.71% higher! While many might say that there was no specific catalyst for the rally, some point out specific media reports which might have been interpreted as some sort of a possible state intervention. Nevertheless, positive sentiment literally overshadowed all disturbing coronavirus news.
European equities had a great trading day too as most major indices rose over 1.50%. DAX added 1.64% while FTSE 100 rose 2.09%. Wall Street opened higher as well with Nasdaq gaining the most (roughly 2.20% at press time). In fact, Nasdaq did climb to fresh all-time highs today as bulls maintain their dominance. Even though investors tend to flee towards the riskier assets today, some precious metal gain as well. Both gold and silver prices are up, the latter as much as 1.20% at press time.
As far as the data front is concerned, today’s releases were quite mixed. First of all, investors had to deal with poor data from Europe. Spanish industrial production unexpectedly fell 24.5% YoY in May (vs expected: 18.5%) while German factory orders rose barely 10.4% MoM in May - analysts expected as much as 10.0%. Eurozone’s retail sales in May did a little bit better as the print came in above the forecast (+17.8% MoM vs 15.0% expected). On the other hand, investors should be pleased with data from the US as both PMI and ISM Non-Manufacturing came in above market expectations. The headline ISM Non-Manufacturing did exceptionally well as the index soared in June to 57.1 pts (vs expected 50.1 pts).
Tomorrow investors should pay attention to Japanese household spending data (01:30 am BST time). RBA will announce its interest rate decision, but market expects that the main interest rate will remain unchanged. In the morning Federal Statistical Office of Germany will publish industrial production data for the month of May. Some market participants might also be interested in Ivey PMI from Canada, which will be released in the afternoon BST time.
D30 continues to surge as the index remains in an upward trading channel. Nevertheless, the index is gradually approaching crucial resistance area (12,930 pts) and investors should certainly be prepared for some price reactions there. Source: xStation5
The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 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. X-Trade Brokers Dom Maklerski 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.