Daily summary: Global stocks rise on EU stimulus deal

European indices finished today's session higher. EU leaders managed to came out with a deal on a €750 billion recovery fund, of which €390 billion will be distributed as grants and €360 billion as low-interest loans, with the new debt paid by 2058. During today’s session Dax gained 1%, CAC40 added 0.2% and FTSE 100 gave up some gains and finished 0.1% higher.

 

US indices are trading mixed on Tuesday. Markets welcomed positive earnings reports from companies including IBM (IBM.US) and Coca-Cola (KO.US) as well as promising early data from trials of three potential vaccines. Meantime investors in the US are also hoping for more fiscal stimulus after congressional Republicans announced plans to seek another $1 trillion in economic relief. U.S. lawmakers and White House officials started negotiations today in order to reach an agreement on new coronavirus aid legislation as infections and deaths hit record levels nationwide. The U.S. government has less than two weeks to agree on stimulus before assistance runs out for millions of Americans hit by the pandemic. Dow Jones gains 1.04% and S&P500 adds 0.39%, however Nasdaq erased early gains and is trading 0.52% lower as stocks such as Facebook (FB.US), Amazon (AMZN.US) and Netflix (NFLX.US) struggled.

 

Spot gold rose 1.2% to $1,840/oz, a highest level since September of 2011 as investors are expecting higher inflation due to unprecedented fiscal policy implemented by the central banks and governments around the world. Silver jumped over 6% and is testing the $21 /oz resistance level for the first time since July of 2014.

Oil futures soared to their highest level since early March as oil traders grew more optimistic toward a near-term economic recovery.       WTI crude rose  over 3.0%, to $42.20. Brent crude gained 3.4% to $44.75 at intraday highs.

There are no major, market moving data scheduled for release on Wednesday. Australian retail sales figures will be the key release of the Asian session while Canadian inflation figures and US Existing Home Sales data will be on watch during US trading hours. Apart from that, EIA Crude Oil Stocks report is expected to show a 1.95 mln decline. Investors will focus on the weekly initial jobless claims release, on Thursday, given the renewed economic shutdowns in California, Florida and Texas.

On the corporate front, Microsoft Corp. (MSFT.US) and Tesla (TSLA.US) will publish their quarterly results.