Daily summary: Global stocks mixed as investors await EU deal

• BioNTech (BNTX.US), Pfizer (PFE.US)  and AstraZeneca Plc (AZN.UK) reported early positive data on COVID-19 vaccines
• US Congress will debate over new coronavirus aid bill
• 4th day of the EU summit

Major European indices finished session mostly higher as investors await the outcome of the EU summit after leaders failed to reach an agreement on the €750 recovery fund during the weekend. Some Member States do not like the high amounts of grants that would be awarded to individual countries affected by the pandemic. European Council President Charles Michel proposed a new figure of €390 billion in grants combined with smaller rebate, down from an initial proposal of €400 billion, but higher than the €350 billion proposed by Austria, Denmark, Sweden, and the Netherlands. On the earnings front, Renault reported a massive 34.9% drop in sales, however company sees signs of recovery in June. Meantime Volvo (VOLVB.SE) and Ericsson (ERICB.SE) posted better than expected results.

Recent news regarding potential COVID-19 vaccine lifted market sentiment. German biotech firm BioNTech (BNTX.US), US drugmaker Pfizer (PFE.US) and Oxford-AstraZaneca (AZN.UK) reported promising results in early human testing. During today’s session DAX rose 1%, CAC 40 gained 0.3%. FTSE 100 finished 0.5% lower as investors await any new development on Brexit talks or the EU Recovery Plan. In case if the UK and the EU won't be able to reach an agreement on their future relationship, tariffs and quotas will be re-imposed when the UK leaves the bloc at the year-end.

 

US indices are trading mixed during the first session of the week. The Nasdaq rose 1.5% as Amazon (AMZN.US) shares led other major tech stocks higher. Amazon shares climbed 4%  as two brokerages increased their price targets. Meanwhile S&P500 advanced 0.40% as prospects of a potential coronavirus vaccine and more U.S. fiscal stimulus shore up market sentiment. The Dow was weighed down by industrial conglomerate 3M Co (MMM.US).

US Congress will debate over new fiscal stimulus package this week as some support programmes will expire at the end July. Meantime surging numbers of new  coronavirus cases are  forcing many states to reimpose some restrictions.

 

WTI crude managed to erase early losses and is trading slightly higher today around $40.7 a barrel, amid positive news about a potential coronavirus vaccine. Brent is trading flat around  $43.15 per barrel.

 

Gold prices reached almost  9-year high of $1,818 /oz ounce on Monday, while Silver prices jumped toward $20 /oz, a level not seen since autumn 2016, thanks to the weaker dollar. Also looser monetary policies implemented by major economies in order to fight the negative impact of the pandemic sparked fears of inflation among some investors.

 

Economic calendar for Tuesday does not seem to be particularly interesting. Japan's CPI figures, RBA Meeting Minutes and Governor Lowe speech  will be the key releases of the Asian session while UK Public Sector Net Borrowing and Swiss  Balance of Trade figures will be on watch during European trading hours. During the US trading hours, attention will be paid to Canadian Core Retail Sales  data and API Crude Oil Stock Change report. On earnings front Coca-Cola Co., Philip Morris Inc., Lockheed Martin Corp. will report their quarterly results.

GBPUSD – British pound is one of the strongest currencies among majors during today’s session. Cable is approaching major resistance  zone at 1.2676 which is additionally strengthened by 200 MA (redline). In case of a break higher, the next resistance to watch is located at 1.2817. However if sellers will manage to take control on the market, then downward move into 1.2480 is possible. Source: xStation5

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