wall street

Wall Street Ended Positively; US Dollar Weakens

Equity Markets

Amid easing lockdown measures, global stocks shrugged off geopolitical tensions and the civil unrest in US cities over the killing of George Floyd. US stocks initially fell following President Trump’s consideration of deploying the US military if cities and states failed to take action.

World Equity Indices

Source: Bloomberg

Despite the downside risks currently present in the financial markets, Wall Street decided to focus on the positives:

  • Dow Jones Average Industrial gained 268 points or 1.1% to 24,743.
  • S&P 500 added 25 points or 0.8% to 3,081.
  • Nasdaq Composite rose by 56 points or 0.6% to 9,608.

The Energy sector was among the best-performing indices on Tuesday, buoyed by heightened expectations of the extension of production cuts ahead of the OPEC+ meeting.

Currency Markets

In the FX space, major currencies were stronger against the US dollar as risk sentiment remains elevated by the reopening of economies. Safe-haven currencies were among the worst-performing currencies.

Source: Bloomberg Terminal

The Antipodeans outperformed on the back of the overall optimism in the markets and the broad US dollar weakness. The RBA remained less-dovish compared to other major central banks. Despite the high levels of uncertainties and the fact that the Australian economy is experiencing the biggest economic contraction since the 1930s, the RBA maintained some optimistic tones.

Both the AUDUSD and NZDUSD surged higher and are currently trading around the 0.69 and 0.63 levels, respectively.

AUDUSD and NZDUSD (Daily Chart)

Source: GO MT4

The EURUSD continues to edge higher, lifted by positive news around the EU recovery plan and Germany’s domestic stimulus package of EUR100 bn to fight the economic impact of the coronavirus.

EURUSD (Daily Chart)

Source: GO MT4


The overall risk-on sentiment, a weaker US dollar and improving demand and supply fundamentals provided support to the oil market. As per yesterday’s API weekly stockpile for the period ended on May 29, oil inventories dropped -0.483 million barrels versus the previous addition of 8.731 million barrels. Ahead of OPEC+ nations meeting in June, traders are finding some reassurance that Saudi Arabia and Russia are moving close to a deal to extend productions cuts.

As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) are trading firmer at $37.30 and $39.87, respectively. The immediate attention is now on the EIA report.


Gold is unable to maintain a firm upside momentum despite a weaker US dollar as risk appetite has improved. However, geopolitical tensions have cushioned the downside of the precious metal. As of writing, the XAUUSD pair fell and is consolidated around $1,725.

XAUUSD (Daily Chart)

Source: GO MT4

Key Upcoming Events

  • AiG Performance of Construction Index, GDP, and Building Permits (Australia)
  • Caixin Services PMI (China)
  • Gross Domestic Product (Switzerland)
  • Unemployment Rate & Change and Markit PMI Composite (Germany)
  • Markit Services PMI (UK)
  • Unemployment Rate (Eurozone)
  • ADP Employment Change, Markit PMI Services & Composite, ISM Non-Manufacturing New Orders Index, PMI, Employment Index, and Prices Paid, Factory Orders EIA Crude oil Stocks Change (US)
  • BoC Rate Statement & Interest Rate Decision (Canada)
Indicative Index Dividends

View upcoming dividend adjustments for open Index CFD positions.

Upcoming Webinars

Inner Circle: ‘Interviews with Successful Traders’ series – Elay Ghaly

Wednesday 03 June, 7:30 PM – 8:30 PM AEST | Register now

Lunch Time Session: Live Market Update

Thursday 04 June, 12:30 PM – 1:15 PM AEST | Register now

Was this post helpful?