• Riots continue to spread across the US
• Gold prices edged lower despite
European indices finished today's session in green as investors remain optimistic about the global economic recovery. Recent PMI data showed the Eurozone and US manufacturing contractions eased last month and China's factory activity increased unexpectedly. Tomorrow German government is likely to announce another stimulus package worth €100 billion which aims to support German economy. The measures could include debt relief for struggling municipalities, cash bonuses to stimulate car sales, the extension of a state wage-support program and the introduction of a family bonus. DAX gained 3.8% and is trading at its highest level since March 4th. CAC 40 added 2% and FTSE 100 finished 0.9% higher.
US indexes are trading mixed. While S&P 500 and the Dow Jones both hit three-month highs today, Nasdaq is trading 0.24 % lower. Investors continue to ignore the risk associated with the coronavirus and the possible escalation of the US-China conflict. Street protests that have spread all over the US also seem to have a negligible impact on financial markets. Massive stimulus and the restarting of businesses have helped the benchmark S&P 500 (US500) recover about 40% from its March lows, leaving it only about 10% below a record high hit in mid-February. "The U.S. equity market continues to rally despite the fact that we're clearly in a recession," said Keith Bliss, managing partner at iQ Capital (USA) LLC. "Most investors believe that companies will be able to come out of this on the other side, actually in better shape.. more efficient and more streamlined."
Today's macro calendar was practically empty, which is why the market lacked impulses that could lead to more dynamic moves. However there are some events scheduled for tomorrow that are worth paying attention to. A lot of PMI indices from the Eurozne will be released on Wednesday. Australian GDP figures will be the key release of the Asian session while Germany unemployment figures will be on watch during European trading hours. US ADP report and ISM manufacturing are key readings scheduled for the US session. Apart from that, investors will get to know BOC decision on interest rates. Oil traders should pay attention to EIA Cushing Crude Oil Stocks Change. Meanwhile, investor focus turned to the ECB's meeting on Thursday at which policymakers are seen extending the bond-buying programme.
Aussie continues its trend to the upside after the RBA kept rates unchanged (as expected). AUDUSD jumped over 1.30% and is the top performing currency pair during today’s trading session. Currency pair broke above the local resistance at 0.6767 and is heading towards round 0.70 resistance level. 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.
