Daily summary: Global stocks higher ahead of tomorrow’s Jackson Hole symposium

 

European indices finished today's session in green after the German government agreed to extend its coronavirus stimulus relief to support the economy, including an extension of short-time work subsidies until the end of 2021 and prolonging bridging aid for small and mid-sized companies until the end of this year. French government announced, that more details regarding its €100 billion economic recovery plan should be presented on September 3rd. DAX 30 rose 1% and reached its highest level since February 21st, CAC 40 gained 0.8%, the FTSE MIB added 0.5%, the IBEX 35 advanced 0.2%, and the FTSE 100 finished 0.1% higher.

US indices are trading higher with both the S&P 500 and the Nasdaq hitting fresh all-time highs. Upbeat quarterly reports from Salesforce, Intuit and HP Enterprise and positive economic data lifted market sentiment. US durable goods orders surged over 11% in July, well above analysts' expectations. Tomorrow markets attention will focus on speech from FED Chairman Jerome Powell at the virtual Jackson Hole symposium. Investors are hoping for more information regarding the central bank's view on inflation and  more indications on the Fed's next monetary policy steps.

 

WTI crude futures are trading above $43.5 per barrel which is the highest level since beginning of March after the EIA report showed a larger-than-expected decline in US crude stockpiles last week. Brent crude futures are also trading higher at around $45.9 per barrel, near the five-month high of $46.08. Meanwhile US oil producers evacuated 310 offshore facilities and shut 84% of Gulf of Mexico’s offshore crude oil ouput production as hurricanes Laura and Marco are approaching the area. Still, worries regarding fuel demand recovery weighed on sentiment, as the number of new COVID-19 infections continue to rise and cases of human re-infections started to emerge.

Spot gold rebounded from a two-week low to trade around 1,945 and silver prices rose over 2% in a volatile session, snapping a three-day losing streak.