Amid a relatively subdued calendar, global stocks traded mixed across the board. Investors are rattled by the rising number of cases that are threatening the recovery in the global economy, improving economic data and vaccine updates.
World Equity Indices
Wall Street managed to eke out some modest gains and ended in positive territory:
- Dow Jones Industrial Average added 177 points or 0.7% to 26,067.
- S&P 500 rose by 25 points or 0.8% to 3,170.
- Nasdaq Composite added 149 points or 1.5% to 10,493.
In the FX space, a fragile improvement in risk appetite and a muted economic calendar have sent the US dollar to the downside. Major currencies were stronger against the greenback.
The Antipodeans and Canadian dollar also found support on higher commodity prices. The Aussie dollar recovered from lows seen after the RBA’s statement. As of writing, the AUDUSD pair is back to trading just below the 0.70 level.
The Pound edged higher and managed to shrug off Germany’s gloom stance on Brexit deal. The GBPUSD pair rose to a high of 1.2623 on Wednesday.
After the API reported a build of 2 million barrels in crude oil inventories, the Energy Information Administration reported a rise of 5.7 million barrels of crude oil in the week to July 3. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $40.91 and $43.32, respectively.
The uncertain environment drove Gold to $1,800 for the first time since 2011. The XAUUSD pair hit a high of $1,818 before retreating lower. The doubts of economic recovery following the resurgence of virus cases remain the primary factor of caution for markets which will continue to support the precious metal.
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