• Eurozone PMI survey above expectations
• China ordered the US to close its consulate in Chengdu
• Gold hits $1900/oz
• China ordered the US to close its consulate in Chengdu
• Gold hits $1900/oz
European indices finished today's session down more than 1% as the rising tensions between Washington and Beijing completely overshadowed strong industry data. China ordered US to close its Chengdu consulate, in retaliation for being forced to shut its Houston consulate earlier this week. Meanwhile recent PMI data pointed the Eurozone economy expanded the most for over two years.
US main indexes dropped on Friday amid escalating Sino-U.S. tensions and rising concerns regarding increasing number of new infections and fatalities caused by the COVID-19. Number of confirmed cases in the United States surpassed 4 million. The death toll is also starting to increase. Yesterday US recorded over 1,100 new coronavirus deaths for a third day in a row. Also unexpected increase in U.S. jobless claims and disputes between Senate Republicans and the White house over stimulus measures weighed on market sentiment. Latest data showed U.S. business activity jumped to a six-month high in July, however companies reported a lower numbers of new orders as a resurgence in new COVID-19 cases weighed on demand.
On the earnings front Honeywell International (HON.US), American Express(AXP.US) and Verizon (VZ.US) all posted better than expected quarterly results. Intel Corp (INTC.US) stock plunged 16.9%, despite positive earnings report, after company announced it was six months behind schedule in developing next-generation, power-efficient chip technology.
On the earnings front Honeywell International (HON.US), American Express(AXP.US) and Verizon (VZ.US) all posted better than expected quarterly results. Intel Corp (INTC.US) stock plunged 16.9%, despite positive earnings report, after company announced it was six months behind schedule in developing next-generation, power-efficient chip technology.
During today’s session gold prices breached $1,900 an ounce for the first time in nine years and edged closer to its all-time high of $1,920 from September 2011 as flaring geopolitical tensions and worries over global growth drive demand for haven assets. Due to the same reason WTI futures dropped 0.44% lower, around $ 40.8 a barrel. Brent crude lost 0.76% and is trading around $ 42.9 a barrel.
Economic calendar for Monday is quite light with only German Ifo Business Climate will be the key release of the European session while US durable goods orders will be on watch during US trading hours. On the earnings front, Hasbro, Ryanair and SAP SE will publish their quarterly results.
USDJPY - pair broke below the May lows at 105.95 and is trading at the lowest level since March 16, 2020. Should downbeat moods prevail, support at 104.55 may come into play. Source: xStation5
