News & Analysis

Overnight on Wall Street: Wednesday 19 August 2020

August 19, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

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. 


Source: Bloomberg

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.  

  • The Dow Jones Industrial Average lost 67 points or 0.2% to 27,778.
  • S&P 500 added 8 points or 0.2% to 3,390.
  • Nasdaq Composite gained 81 points or 0.7% to 11,211.


Source: Bloomberg

Currency Markets

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. 


Source: Bloomberg

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.


Source: Bloomberg

Commodities

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

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
 @DeeptaGOMarkets

Key upcoming events

  • Merchandise Trade Balance Total, Imports, and Exports (Japan)
  • Westpac Leading Index and HIA New Home Sales(Australia)
  • Retail Price Index, PPI Core Output, and Consumer Price Index (UK)
  • Consumer Price Index (Eurozone)
  • BoC Consumer Price Index (Canada)
  • FOMC Minutes (US)
Thursday, 20 August 2020 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.214 0 0.108 0.109 0.207 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 7.664 0 4.614 0 0


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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