Wall Street

Another Day of Gains on Wall Street

Equity Markets

Risk sentiment was buoyant, lifted by the positive progress towards the development of a promising vaccine for COVID-19. European bourses and major US equity indices ended in positive territory.

Source: Bloomberg

Another day of gains on Wall Street as investors focused on the positives and momentarily setting aside the resurgence of the coronavirus cases:

  • Dow Jones Industrial Average added 228 points or 0.69% to 26,870.
  • S&P 500 rose by 29 points or 0.9% to 3,227.
  • Nasdaq Composite added 62 points or 0.6% to 10,551.

Source: Bloomberg

On the earnings calendar, Goldman Sachs reported its second-quarter earnings exceeding expectations before the bell:

  • Net revenues of $13.30 billion and net earnings of $2.42 billion
  • Earnings Per Share (EPS) was $6.26 for the second quarter of 2020 compared with $5.81 for the second quarter of 2019 and $3.11 for the first quarter of 2020, and was $9.36 for the first half of 2020 compared with $11.52 for the first half of 2019
  • Provision for credit losses was $1.59 billion

Similar to JP Morgan, bond trading helped Goldman Sachs to offset the loss in loan provisions. The Company’s share price ended the day 1.35% higher at $216.90.

Currency Markets

In the FX space, nearly all major currencies were stronger against the US dollar. The safe-haven currency struggled to edge higher following the better market mood.

Source: Bloomberg Terminal

On the economic front, UK CPI figures helped the GBPUSD pair to reach an intraday high of 1.2649 before retreating lower. The headline CPI rose by 0.6% in June 2020, up from 0.5% in May.

GBPUSD (Daily Chart)

Source: GO MT4

The loonie was among the best performers following the Bank of Canada’s meeting and press conference. As widely expected, the BoC kept interest rates unchanged at 0.25%.


Crude oil prices traded on the back foot on the news that OPEC and Russia might start scaling back the production cuts. The broad optimism around the vaccines and a bullish EIA report helped oil prices to recover to the upside. The US Energy Information Administration reported a larger-than-expected draw. Crude Oil Stocks Change in the US dipped from the previous 5.654M to -7.5 million barrels in the week ending July 10th. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading higher around $41.01 and $43.64, respectively.


Amid a risk-on and off sentiment, the precious metal swung between gains and losses. The better market mood remains overshadowed by the overwhelming increase in daily virus cases and the need for further stimulus support. As of writing, the XAUUSD pair is currently trading at $1,810.

Source: GO MT4

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