• Nasdaq hits record high
• European stocks at 2-week high
• Trump reassured that the US-China trade deal is fully intact
• European stocks at 2-week high
• Trump reassured that the US-China trade deal is fully intact
European indices finished today's session sharply higher after recent PMI data came in above analysts' expectations as many EU members eased coronavirus lockdown restrictions. At first glance, better data may suggest that the situation in Europe returns to normal faster than previously assumed, but it is worth noting that markets are probably too optimistic about these figures. One need to remember that these reports compare the situation month to month. So if the majority of respondents think that the situation is better than a month earlier, then PMI will show a high reading. However, it is still not reliable compared to January or February. Therefore, investors should pay more attention to the spending data. If there is improvement here, then it will be a factor indicating that the economy is recovering. On the corporate front, Wirecard (WDI.DE) shares rose for the first time since the financial scandal emerged. According to Munich prosecutors, former CEO Markus Braun has been arrested. During today's session DAX soared 2.3% higher, while both CAC 40 and FTSE 100 added 1.10%
US indices also rose on Tuesday amid better than expected PMI data. The Nasdaq 100 (US100) hit a fifth record high this month and S&P 500 (US500) is just about 7% below its Feb. 19 record high. Apple Inc (AAPL.US) is one of the top performers. Recently at least three brokerages raised its price targets after company announced it would use its own chips for Mac computers. Investors’ risk appetite improved after US President Trump confirmed via Twitter that the US-China trade deal is fully intact following confusing comments from White House trade adviser Peter Navarro. Meanwhile, United States saw a 25% increase in new cases of COVID-19 in the week ended June 21 compared to the previous seven days, with Arizona, Florida and Texas experiencing record surges in new infections, according to Reuters. Texas Governor Greg Abbott declared the COVID-19 is spreading at an unacceptable rate, warning that additional measures are going to be necessary to contain the spread of the virus.
Gold price is rising for the third straight session and today hit a seven-year high of $1,767 per ounce. Gains came despite a rise in equities driven by US President Trump tweet regarding the US-China trade pact.
Oil prices reached their highest levels since beginning of March, as investors welcomed the fact that OPEC is making sure that other countries which signed to its deal regarding production cuts actually complies with it. According to Newswires, Iraq, Nigeria, Angola, and Gabon have now all submitted their plans for compliance with the production cut. American Petroleum Institute will provide its weekly report on U.S. crude oil inventories, against a backdrop of rising coronavirus infections in big oil producing states such as Texas and Oklahoma.
Wednesday is light in terms of macroeconomic releases. RBNZ rate decision will be the key release of the Asian session while German IFO will be on watch during European trading hours. Apart from that, EIA crude inventory report will be published during US session.
USD/JPY - US Dollar had been trading under pressure today. Currency pair is approaching 105.95 support level. If sellers will manage to break below it, then downward move toward 104.55 may accelerate. However if buyers will manage to regain control on the market, then strong resistance can be found around 108.68. Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
