By Deepta Bolaky
Global stocks advanced higher on the early signs of a slowdown in the number of daily coronavirus cases in the US and have recouped the losses made for the year.
European stocks performed well despite the preliminary reading of the second quarter of the UK GDP showing a contraction of 20.4%, marking the second consecutive quarterly decline. Wall Street rallied driven by the outperformance of mega-cap tech stocks. Major US equity indices ended in positive territory.
In the FX space, major currencies were stronger against the greenback. The British Pound struggled to gain momentum against the US dollar, unlike its peers following mixed macro data.
Crude oil prices edged higher on bullish inventory reports. The US Energy Information Administration (EIA) revealed on Wednesday a decline of 4.5 million barrels in crude oil stock in the week ending August 7th. WTI settled above a key level for the first time since January.
As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading higher around $42.65 and $45.40 respectively.
Gold plunged from recent record highs and slipped the most in seven years. As of writing, the XAUUSD pair is currently consolidating around the $1,930 mark. A peak or a temporary retracement? The positive vaccine updates and the broad optimism have sent gold tumbling on Wednesday. After a great run to the upside, some correction was inevitable.
However, the virus woes, ongoing fiscal support, geopolitical tensions, uncertainty of the global economic outlook still favours the demand for the haven asset.
By Deepta Bolaky
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|Friday, 14 August 2020
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