• European equities finished session higher
• Weak ADP report
• Oil price fell despite upbeat EIA report
European indices finished today's session in green following four days of declines. Investors expect that the ECB will have to provide additional fiscal stimulus after recent data showed that euro area consumer prices fell last month for the first time since May 2016, while retail sales in Germany declined unexpectedly in July. Meanwhile, Europe is struggling with the second wave of coronavirus infections, which may have negative impact on the region economic recovery. DAX 30 rose 2%, CAC40 gained 1.9% and FTSE 100 finished 1.4% higher.
US indices are trading higher with both S&P 500 and Nasdaq hit a fresh record highs as investors digest poor ADP report which showed that employment growth in the US slowed sharply. However, it seems that market was in "good news is good news and bad news is good news" mode again, as disappointing data raised hopes of more stimulus from FED. Governor Lael Brainard said yesterday that Federal Reserve will have to take additional actions in order to meet its - now revised - target for inflation. Meanwhile, Treasury Secretary Steven Mnuchin resumed talks with the House Speaker Pelosi regarding coronavirus stimulus package after previous negotiations between both sides broke up almost a month ago. Also, the Centers for Disease Control and Prevention will invoke its authority to halt evictions through the end of the year. During today's session Tesla (TSLA.US) stock fell 10%, while Apple (AAPL.US) shares dropped almost 3% taking a pause from the strong rally that followed their recent stock splits.
WTI crude plunged over 2% and is trading below $42 per barrel despite the fact that both the EIA and API reports showed bigger-than-expected draws in US crude stockpiles. Oil prices were under high pressure amid a stronger dollar and concerns over fuel demand recovery after the ADP report came in below market estimates. Meanwhile Brent crude futures also fell more than 2% to around $44.60 a barrel. Gold dropped over 1.8% to trade around $1,934 an ounce and silver prices fell as much as 3.7% towards $27 an ounce.
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AUDUSD - during today’s session currency pair broke below the support zone at 0.7328. Should downbeat moods prevail, next support at 0.7242 may come into play. Source: xStation5
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