News & Analysis

Overnight on Wall Street: Tuesday 11 August 2020

August 11, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Global stocks started the week on a mixed note following the escalating tensions between the US and China over tech. Ahead of the scheduled talks, the brewing new cold tech war is sapping optimism. European stocks bounced from lows lifted mostly but banks and oil shares.


Source: Bloomberg

In the US share market, the attention was on the US-China jitters and the second round of stimulus after talks with Congress broke. During the weekend, President Trump issued controversial executive orders which are deemed as illegal by the Democrats: 

  • The Dow Jones Industrial Average gained 358 points or 1.3% to 27,791.
  • S&P 500 rose by 9 points or 0.3% to 3,360.
  • Nasdaq Composite finished by 43 points or 0.4% lower to 10,968.


Source: Bloomberg

Currency Markets

In the FX space, major currencies were mixed against the US dollar in the European and US session amid a muted calendar. The Canadian dollar emerged as the best-performer on the back of stronger commodity prices


Source: Bloomberg

The US dollar index which tracks the performance of the US dollar against a basket of currencies ended slightly higher on Monday.

The greenback appeared to have found some support on the signing of the controversial executive orders which are being challenged and deemed as illegal by the Democrats.

Commodities

A combination of bullish weekly oil reports and improving economic data are providing support to the oil industry while the fears of a second outbreak are forcing traders to remain cautious. Crude oil prices edged higher on Monday. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $42.08 and $45.04, respectively.

Gold

In the pandemic-induced environment and escalating geopolitical tensions, gold is shining bright. Last week, the precious metal rose above the $2,000 mark for the first time and reached a high of $2,072.25. Investors are hedging with safe-haven assets. Gold seesawed in a tight range in the last two sessions. 

As of writing, the XAUUSD pair is currently consolidating in a range around the $2,020 mark.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • REINZ House Price Index (New Zealand)
  • Current Account (Japan)
  • BRC Like-For-Like Retail Sales, Claimant Count, ILO Unemployment Rate, and Average Earnings (UK)
  • ZEW Survey – Current Situation and Economic Sentiment (Germany)
  • ZEW Survey – Economic Sentiment (Eurozone)
  • Producer Price Index (US)
Wednesday, 12 August 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 5.967 0.497 0.032 0.091 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 0.345


Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs. Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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