News & Analysis

Overnight on Wall Street: Tuesday 25 August 2020

August 26, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Ahead of the most-awaited event for the week – Jackson Hole Symposium whereby investors will have updates from central bankers, policymakers and economists around the world, global stocks advanced higher on the back of vaccine-related optimism. 

Wall Street ended in positive territory as US stocks rose to new record highs. S&P500 and Nasdaq Composite advanced to new highs on Monday.

  • The Dow Jones Industrial Average added 378 points or 1.4% to 28,308.
  • S&P 500 rose by 34 points or 1.0% to 3,431.
  • Nasdaq Composite added 68 points or 0.6% to 11,380.


Source: Bloomberg

Currency Markets

In the FX space, major currencies were weaker against the greenback. The US dollar index which tracks the performance of the greenback against a basket of currencies rose above the 93 mark. 


Source: GO MT4

Major pairs traded in familiar levels ahead of the Fed Chair Jerome speech at the Economic Symposium at Jackson Hole. The symposium is gearing up to be a dollar-event. On the economic front, Monday was relatively subdued with a few releases:

New Zealand: Retail sales values fell a historic 15 percent in the June 2020 quarter during the COVID-19 lockdown, the biggest drop on record in figures going back 25 years.

United States: The Chicago Fed National Activity Index (CFNAI) was +1.18 in July, down from +5.33 in June. This reading came in worse than the market expectation of 2.73.

Commodities

Crude oil prices traded in familiar ranges despite a stronger US dollar. The positive vaccine news supported the oil market ahead of the weekly oil reports. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading higher around $42.53 and $45.17 respectively.

Gold

As risk sentiment improves lifted by vaccine-related optimism, the precious metal is struggling to edge higher. The XAUUSD pair has consolidated into a tight range around the $1,930.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Gross Domestic Product, IFO – Business Climate, Current Assessment and Expectations (Germany)
  • Housing Price Index, S&P/Case-Shiller Home Price Indices, New Home Sales and Consumer Confidence (US)
Wednesday, 26 August 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
3.783 0 0.025 0.023 0.235 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 2.682


Disclaimer:  The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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