market sentiment is relatively mixed. Democratic leaders and White House
officials seem cautiously optimistic after another round of talks on Monday
about the new coronavirus aid package, under increasing pressure to reach an agreement
since millions of Americans are living without the $600 a week unemployment
benefit supplement, and U.S. President Donald Trump has launched potential
gained ground on the Yen this Tuesday in Asia, after robust economic data has
increased risk appetite by putting the Yen under pressure as a safe asset.
to be like a nice day for a short lull in the market battle, as only the
Business Condition survey among firms in the New York City area is going to be
published during today's trading session. There are no more noticeable macro
reports that could be highly appreciated by the investment community. The
Johnson's Redbook Index will come later, which is just same-store sale figures
in a sample of large U.S. merchandise retailers representing about 9,000
market sentiment is of an appetite for risk. Good manufacturing and service
data across Europe and China are fueling hope for a faster-than-expected
equities and U.S. futures continue to rise this Monday, before another week of
results as discussions continue over a US pandemic relief package.
Yields of US
Treasurys fell on Friday, registering a weekly and monthly fall due to fears
over the economic consequences for the global economy of the coronavirus.
European stock prices were initially subdued after a negative close on Friday, as the London-headquartered HSBC bank, which makes most of its profit in China and Hong Kong but at the same time is the EU biggest lender, announced today that its pre-tax profits dropped more than 80% to £0.842 billion in the second quarter, down from £4.7 billion a year ago. The bank giant accelerated 35,000 job cuts and was forced to put aside another £2.9 billion to cover bad debts, warning its bad loans could exceed a previous total estimate, which could reach £10 billion by the end of 2020.
reports from the four IT giants from the so-called FAANG group released on
Thursday after the close of regular trading, surprised even the hard-boiled but
inveterate optimists. Amazon shares showed $3211 in extended post-market
trading and even $3217 later during today's pre-market period, which means
+5.41% if compared with the official $3051.88 closing price yesterday. Apple Co
shares soared to $402 in the post-market period, and climbed even higher to
investors assessed the potential terms of the next stimulus package and the
easing of coronavirus infections, while digesting the results of major US
companies. The Federal Reserve’s Chairman Jerome Powell also dominated the
attention of the markets.
In Europe, the
Stoxx Europe 600 index gained 0.5%, at the end of a session in which it
fluctuated between gains and losses. The German DAX index closed at the
waterline, the French CAC index lost 0.2% and the British FTSE 100 index rose
narratives of the U.S. Federal Reserve’s (Fed) Chairman after a rather
walkthrough-room meeting yesterday have not impressed the markets much. It was
too casual by pandemic time standards and prompted assets that had been rising
in price madly for several days in a row, like gold, silver or some currencies,
only to repeat their previous highs this time. That was followed by a slamming
wave of profit taking, which triggered some downside pullbacks. For example,
just a little bit below $1954/toz in gold spot contracts for now after testing
$1980/toz last night.
Futures for the U.S. Dollar Index (DXU0), which tracks the Greenback weighted
average position against a basket of six other currencies, are already four %
down since the beginning of July. Now they are located more than ten % lower
than its highest values in March, at the peak of the quarantine-related
safe-haven demand for the U.S. currency. After such a long trip, some currency
pairs may take a kind of time-out for the nearest couple of trading sessions,
ahead of the proposed announcement of the U.S.
prices have stabilised over the last week of July within the range of $43.2-44
per barrel of Brent crude. Oil prices are balanced by several counteractive
output is rising in countries that are not linked to the OPEC+ deal, namely the
United States. The number of oil rigs is rising in the U.S. for the first time
since March. According to the recent data published by Backer Hughes, crude
output rose by 0.1 million barrels per day to 11.1 million bpd. Rising
production curbs prices from a further climb.
emerged signs of U.S.
volatility in precious metals went into overdrive this morning as gold spot
contracts skyrocketed first to the short-lived stratospheric highs above
$1980/toz in early Asian hours and then nuzzled into the mud of a fleeting low
at $1907/toz in the European morning. Afterwards they managed to recover by $15
higher again in several minutes and touched $1935/toz before the noon. The
range of jumps reached as much as 15% for silver futures, which managed to draw
alternately $26.15 and $22.25, and $24 again on intraday charts.