• European stocks close mixed at end of volatile session
• US equities continue to move higher
• US factory activity hits 19-month high
European indices erased early gains and finished first session of the month mostly lower, as disappointing data showed the Eurozone consumer prices dropped last month for the first time since 2016 and recovery of the Spanish manufactory sector is slowing down due to the second wave of COVID-19 infections. Meanwhile AstraZeneca and Oxford University, as well as Pfizer and BioNTech announced, they would have data by October to support US emergency use authorization or approval of their vaccines. German Economy Minister Peter Altmaier said the country's economy is doing better than expected and that the decline in 2020 will amount to 5.8%, compared with the previous expectations of 6.3% decline. DAX 30 rose 0.2%, CAC 40 fell 0.2% and FTSE 100 finished 1.7% lower.
Meanwhile in the US, the Dow Jones reversed earlier losses and is trading 0.3% higher and both S&P 500 and the Nasdaq rose after the ISM Manufacturing PMI came in above market expectations and showed factory activity reached level last seen in 2018. Tech shares are the top performers, led by Apple after a stock split that took effect on Monday and after the company asked suppliers to build 75 million 5G iPhones, similar numbers to last year. Zoom stock surged higher after company's quarterly results came well above estimates. Meanwhile, Tesla stocks attempted to gain after news that the company plans to sell up to $5 billion of its own stock. Yesterday, both the Dow Jones and the S&P 500 wrapped their best August month since the 1980s. Both indexes advanced over 7% while the Nasdaq added almost 10%.
Gold hit two-week high of $1,992 an ounce and silver futures extended gains for the third session, reaching a three-week high of $29 an ounce . WTI crude rose over 1.8% to trade above $43 a barrel and Brent gained 1.3 %, as demand was boosted by weaker dollar and prospects of falling US crude stockpiles. The API report will be published later in the day and tomorrow investors will get to know EIA figures. Analysts' are expecting a 2 million drop in US crude inventories.
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USDCAD - during today's session currency pair dropped to its lowest level since January 7 at 1.2996. Should downbeat moods prevail, the low from the end of December at 1.2953 may come into play. Source: xStation5
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