Daily summary: Global equities decline on U.S. election doubts and GDP plunge

5:03 PM 30 July 2020
• Four Big Tech companies due to  report Q2 results after the market close
• US Economy shrinks at record 32.9%
• European Stocks hit 1-month lows
• Trump suggests delay to 2020 US presidential election

European indices finished today's session lower as recent economic data from the Eurozone weighed on investors mood. Today's report showed that, Germany's economy shrank more than expected in the second quarter and at a record pace. Last month Eurozone jobless rate reached the highest level in over a year. Also inflation reports from Germany and Spain showed that both countries are heading  deeper into deflationary territory. Also surging number of new COVID-19 cases negatively affected market sentiment as Spain reported over 2,000 new infections. On the earnings front, Credit Suisse reported better than expected income figures while Lloyds, Volkswagen and Renault posted weaker results. During today's session Dax dropped 3.5%, CAC 40 lost 2.4% and FTSE 100 finished 2.3% lower.
 
Wall Street is trading mostly lower as the US economy shrank at a record 32.9% in second quarter while initial jobless claims rose for a second week. Meanwhile US President Trump suggested in a tweet delaying elections scheduled for November, claiming fraud in mail-in voting. Meantime negotiations regarding the further stimulus package have come to a standstill. Nancy Pelosi said Republicans seem to have "a disdain toward working people", CNN reported.
Today's investors’ attention will focus on quarterly reports of Four Big Tech companies namely Alphabet, Amazon, Apple and Facebook which will be published after market close. More details regarding these companies can be found in our today’s Stock Market Comment post.
 
On the COVID-19 front, death toll in the US surpassed 150,000, while Brazil set daily records of confirmed cases and deaths. Australia is also reporting record number of new infections.

Gold pulled back from record highs  to trade around $1,950 per ounce on Thursday, amid profit taking. Silver fell below the support level at $24.00 per ounce and is testing the next support level at $23.25 per ounce. Gold/silver ratio rebounded above 83.
The U.S. Dollar Index made an attempt to break above the 93.5 but failed to gain more upside momentum and declined closer to recent lows at 93.20.
Oil prices dropped over 4% on Thursday, with WTI futures around $39.4 a barrel and Brent crude near $42 a barrel, amid concerns that increasing number of new coronavirus cases could hamper fuel demand recovery.

A lot is on the agenda tomorrow.  China's Manufacturing PMI, Australia Producer Price Index and Japanese Prelim Industrial Production figures will be the key releases of the Asian session, while Eurozone GDP data will be on watch during European trading hours.  During the US session, market attention will focus on GDP data from Canada, US Personal Income, PCE figures, Chicago PMI and Michigan consumer sentiment. On the corporate front, Merck Co., ExxonMobil, Chevron Corp., AUDI AG, Caterpillar Inc., Colgate-Palmolive Co. are scheduled to report their quarterly results.
USDCHF –  yesterday currency pair broke below its pre-pandemic lows at 0.9179. Should downbeat moods prevail, support at 0.9065 may come into play. Source: xStation5
Share:
Back
Xtb logo

Join over 935 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language