- European indices rebound on Tuesday
- US stocks erase early gains
- IMF Sees Brighter Economic Outlook
European indices rebounded today as strong quarterly results from Swiss wealth manager UBS and optimistic global economic outlook from IMF overshadowed concerns regarding the spread of the coronavirus. EU officials threatened to block AstraZeneca exports of COVID-19 vaccines outside of the bloc after the drug-maker confirmed that deliveries will be delayed within the next few weeks. EU competition regulators approved a € 2.9B pan-European battery project, responding to the growing demand for car and industrial batteries in the EU. Meanwhile, Italian Prime Minister Giuseppe Conte has resigned after losing his Senate majority. President Sergio Mattarella can ask Conte to try to form a broader coalition government, appoint a largely technical and temporary government, or dissolve parliament and call an election two years early. DAX 30 rose 1.7%, CAC40 gained more than 1% and FTSE finished 0.2% higher.
US indices failed to hold early gains and are swinging between gains and losses as investors digest a batch of upbeat quarterly earnings. J&J, 3M, American Express and Verizon all posted better than expected quarterly results while those from General Electric disappointed. Microsoft, Advanced Micro Devices and Starbucks will provide their quarterly earnings after the market close. Wednesday looks to be the key day of the week for US100 traders as Tesla, Apple and Facebook will report results for the final quarter of 2020. Tesla has delivered a record 499,550 vehicles in 2020, just slightly below the target of 500,000 and the report will show if the carmaker continues its streak of profitable quarters. Meanwhile, concerns regarding the passage of the $1.9 trillion stimulus package weighs on market sentiment. Senate Majority Leader Chuck Schumer said that an aid bill is unlikely before mid-March. Meanwhile the two-day Fed meeting on monetary policy also began today.
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Create account Try a demo Download mobile app Download mobile appUS crude futures are trading 0.50% lower around $52.50 per barrel, while Brent contract is trading flat near the $ 55.87 per barrel. Elsewhere, gold futures fell 0.20% to $ 1,852.00 / oz, while silver is trading 0.7% higher around $ 25.50 / oz. Bitcoin is trading below the $32,000 level.
GBPUSD – pair bounced off the upward trendline during today’s session and is currently testing major resistance at 1.3724. In case a break above occurs, the upward move may accelerate towards next resistance at 1.3936. On the other hand, breaking below the aforementioned trendline and support at 1.3627 will invalidate the bullish scenario and another downward impulse towards 1.35 level could be launched. Source: xStation5
