fbpx
global equities

Wall Street to Continue Dovish Rally, Covid-19 Woes Outweigh Recovery Hopes

July 10, 2020
Market
Covid-19 woes outweigh recovery hopes

Jobless data and Trump’s supreme court hearing in focus.

Summary: Global equities continue to remain trapped in dovish price action as local news fails to build positive rally despite providing a boost in intra-day market activity. European market today saw major indices and key equities post gains in early sessions albeit with limited impact on overall market activity. Cues from the Chinese market helped luxury and mining stocks post gains over positive activity in the Shanghai market despite fears stemming from China-U.S. tensions.

Aside from these gains in the technology sector led by SAP’s full-year outlook and business activity update also provided some level of positive price momentum. But concerns of increasing COVID-19 victims across key global economies in the second wave of global outbreak continue to weigh down investor sentiment.

Rare Metals: Rare metals are experiencing consolidation following a strong rally in the previous session. As the price of rare metals scaled fresh yearly highs and Gold tested new 9-year highs, the rally was followed by intense profit booking activity pushing the price below $1800 mark for gold while silver remains steady above $18. However, lingering caution in the market helped limit decline and keep prices steady above key support levels. 

Crude Oil: Crude oil price remains within a familiar level but is seeing dovish activity in the market today. As both US weekly inventory updates – API & EIA reported a build in inventory, demand to supply ratio became shaky once again causing the price of Brent and WTI futures to experience a nearly 1% decline. 

DXY: The US Dollar index continues to remain steady at 96 handle. While USD remains well backed by broad market cautious tone on virus woes, lingering recovery hopes and stimulus measures from the government to aid economic recovery continue to offset Greenback’s strength keeping it steady at current levels. 

On The Lookout: Jobless data and Trump’s Supreme Court tax rulings remain in focus. As trading session heads to North American market hours, investor focus moves towards jobless claims data. US market will see the release of initial and continuing jobless claims today while the Canadian calendar sees the release of Housing Starts and Building Permits data. Aside from the release front, there is also a speech from Presidential Candidate Joe Biden and President Donald Trump’s Supreme Court hearing during which the final verdict is expected to be passed on his tax returns issue. Trump has repeatedly refused to submit his tax returns for subpoenas from congressional investigators and prosecutors. Given that the groups are mostly controlled by Democrats and an election is coming ahead is this year, this ruling could seriously impact his campaign activities. 

Trading Perspective: US futures trading in the international market continues to remain in red as virus woes dominate market mood influencing defensive activity from traders. Caution ahead of jobless data also affected price momentum and volatility in late European market hours. Wall Street is expected to open in red as virus victim count in the US continues to breach new record levels with each passing day in the USA. 

Please feel free to share your thoughts with us in the comments below. 

Is this article Helpful?

Total Views: 88
 

Sign up to My Spread

EURUSD

EUR/USD Trades Dovish Today Falling below the 1.18 handle

EUR/USD: The pair is trading with clear dovish bias today as pair fell below 1.18 handle on USD rebound. But positive EU area macro data helped prevent decline below the …

Most Viewed Articles

Most Popular Articles

Technical Analysis

EUR/USD Trades Dovish Today Falling below the 1.18 handle

EUR/USD: The pair is trading with clear dovish bias today as pair fell below 1.18 handle on USD rebound. But positive EU area macro data helped prevent decline below the …

The Daily Fix

Latest Market Commentary

USD/CAD: The Pair is Trading with Clear Positive Bias

USD/CAD: The pair is trading with clear positive bias but still remains below 1.34 mark for now. USD rebound in later European market hours failed to trigger a breakout rally, …

Popular Articles about Trading

No Result found