Global equities are swinging between losses and gains since the start of the week following conflicting headlines on vaccine, Brexit and US stimulus talks. European markets fared better than US stocks on Wednesday and managed to hold on to some gains.
Source: Bloomberg Terminal
On Wall Street, major US equity indices closed in negative territory but Nasdaq retreated by nearly 2% as technology stocks plummeted overnight:
In the FX space, major currencies were mostly weaker against the US dollar. Commodity-linked currencies and the Pound were among the few currencies to have climbed higher against the US dollar.
The Aussie dollar was further boosted by strong consumer confidence reported by Westpac-Melbourne Institute. The Index rose by 4.1% to 112 in December, reaching the highest level since 2010. The consumer confidence index hits a 10-year high indicating that sentiment has fully improved from the COVID recession.
The highlights of the index are mainly centralized around the speed of the recovery seen after just eight months into the pandemic compared to the GFC and the recession seen in the early 1990s. The AUDUSD pair reached a high of 0.7485 before retreating lower.
The meeting in Brussels and an agreement in principle helped the Pound to edge higher. Despite contradictory headlines, Brexit negotiations are still ongoing allowing traders to hold on the hopes of an agreement before the year-end deadline.
As of writing, the GBPUSD pair is trading around the 1.33 level.
Source: GO MT4
Crude oil prices struggled to edge higher despite the latest positive news ranging from vaccine updates to the OPEC compromise deal as tougher lockdown restrictions, surging coronavirus cases and bearish weekly oil reports weighed on the oil market.
Unlike the API which reported a draw in the weekly crude oil stock to 1.141M in December 4 from previous 4.146M. Crude stocks rose by a massive 15.189M barrels last week versus expectations for a drop of 1.424M.
As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $45.68 and $48.86 respectively.
The precious metal fell on Brexit, coronavirus updates and deadlock in stimulus talks. As of writing, the XAUUSD pair was trading around $1,836.
Source: GO MT4
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