By Deepta Bolaky
Global stocks remained mixed on Tuesday. European stocks edged lower dragged by virus woes, the pace of recovery and geopolitical tensions between China and the US. European stocks are trading within a range as investors are concerned by the rally in the stock markets.
The performance on Wall Street was also mixed. The Dow Jones ended in negative territory while S&P 500 traded near record highs. The Nasdaq Composite rallied to a new record high for a second consecutive session. Investors are favouring big mega-cap technology stocks during this crisis.
In the FX space, major currencies were stronger against the greenback. The US dollar remained under selling pressure against its peers amid a muted economic calendar.
On the economic front, the RBA minutes reiterated the dovish tone of the central bankers. The Aussie dollar holds on to gains lifted by the broad weakness in the US dollar. In the US, housing data was upbeat – Building Permits came above expectations at 1.495M while Housing Starts surge by 22.6% in July.
Crude oil prices advanced higher on Monday on the back of a weaker US dollar and China’s stimulus. A bullish API report provided support to the oil market. Crude oil stock came better-than-expected with a decline of 4.26M barrels compared to a decline of 2M forecasted. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading higher around $42.66 and $45.12 respectively.
Gold reclaimed the $2,000 level as risk sentiment faltered on Tuesday. After reaching fresh record highs, the precious metal plunged and slipped the most in seven years. Virus woes, ongoing fiscal support, geopolitical tensions, the uncertainty of the global economic outlook still favours the demand for the haven asset. As of writing, the XAUUSD pair is currently consolidating around the $2,002 mark.
Source: GO MT4
By Deepta Bolaky
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|Thursday, 20 August 2020
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