Daily summary: Tech-giants rally despite record rise in COVID-19 cases

European indices finished today’s session lower.  Worse sentiment prevailed due to the increase in the number of new coronavirus cases in Germany, US, China and Australia. Investors again began to fear the second wave of pandemic.
Yesterday coronavirus reproduction rate in Germany rose to 2.88, up from 1.79 a day earlier, a rate showing infections are rising above the level needed to contain the spread of the virus over the longer term, according to The Robert Koch Institute. Meantime, the WHO reported on Friday over 183 thousand new infections, which is the largest single-day increase since the beginning of the pandemic. On the corporate side, Wirecard (WDI.DE) admitted that missing EUR 1.9 billion of cash on its balance sheet probably does not exist. Meanwhile Lufthansa's (LHA.US) largest shareholder Heinz Hermann Thiele will discuss with German politicians his objections to the state-backed bailout. German DAX stock index lost 0.8%, while the French CAC40 fell 0.68%, and London FTSE closed 0.81% lower.

 

US indices managed to erase early losses and are trading slightly higher while investors try assess the strength of the economic recovery although growing concerns regarding the second wave of coronavirus infections limit growth potential. Over the weekend several US states, including Nevada, Florida, California, and Arizona have reported record numbers of new infections. On the corporate front Microsoft (MSFT.US), Amazon (AMZN.US), Netflix (NFLX.US) and Apple (AAPL.US) shares hit all-time highs, while shares of American Airlines (AAL.US) and United Airlines (UAL.US). During today’s session Dow Jones rose 0.35%, S&P500 added 0.56 % and Nasdaq is trading 1.28% higher.

 

Gold prices reached a one-month high of $1,758 per ounce, before paring some gains to trade around $1,747 an ounce. Coronavirus fears lifted demand for the safe-haven assets such as gold. Also expectations are growing that governments around the globe would continue to provide stimulus.

 

Oil is trading higher during a volatile session with WTI crude around $40 a barrel and Brent crude above $42 a barrel as investors remain divided between fears regarding second wave of infections  and optimism over tighter supply and concerns about declining demand. According to recent Baker Hughes report, the number of oil and gas rigs in US and Canada fell to a record low in the latest week, meanwhile Iraq and Kazakhstan announced that will try to comply better with oil cuts.

A lot of PMI indices  from Australia, Japan, Euro Zone and US will be released tomorrow. Also API will release its weekly statistical bulletin.

EUR/USD rose 0.7% to $1.1258, moving away from 2-week lows of $1.11680, amid a softer dollar. If buyers will manage to push the price above 1.1263 resistance level then upward impulse toward 1.1358 may be launched. Source: xStation5