Top daily news
US stocks continued to rise amid plans by the Democratic Party to increase the US economy bailout package to $ 3.5 trillion. Funds are needed to eliminate the negative consequences of the coronavirus epidemic. A fire on an oil platform in the Gulf of Mexico caused a sharp rise in oil prices.
Forex news
| Currency Pair | Change |
|---|---|
| EUR USD | -0.11% |
| GBP USD | -0.03% |
| USD JPY | +0.1% |
| USD NOK | -0.1% |
On Tuesday, the US dollar index dropped for the third day in a row. This was mainly due to increased economic risks due to the increase in the number of new cases of coronavirus infection in the United States. On Friday, 93.7 thousand people fell ill, which was the maximum in 9 and a half months. This slightly reduced the likelihood of Fed tightening at the Jackson Hole symposium on August 27-28. Note that the rate increase (0.25%) is not expected. However, investors do not exclude a reduction in the volume of the current program of quantitative easing - the redemption of US government and mortgage bonds. Recall that since June 2020, the Fed has been buying these securities in the amount of $ 120 billion a month, mainly due to its money issue. The US dollar strengthened slightly this morning thanks to yesterday’s positive New Home Sales data in July. Another good factor was the approval of the U.S. Food and Drug Administration of a new coronavirus vaccine developed by Pfizer and BioNTech. The Norwegian krone strengthened 1% against the euro yesterday, thanks to a statement from a Norges Bank spokesman about a possible rate hike (0%) at its next meeting on 23 September.
Stock Market news
| Indices | Change |
|---|---|
| Dow Jones Index | +0.09% |
| S&P 500 | +0.15% |
| Nasdaq 100 | +0.52% |
| US Dollar Index | +0.1% |
American stock indices rose yesterday. S&P 500 and Nasdaq renewed all-time highs. Democratic members of the United States House of Representatives are going to increase the package of assistance to the American economy to combat the consequences of the coronavirus to $ 3.5 trillion from $ 1 trillion, which was approved earlier in the Senate by the Republicans. An additional positive for the stock market was the approval by the US authorities of a new Covid-19 vaccine developed by Pfizer-BioNTech. Against this background, the industry indices S&P 1500 Airline (+ 3.7%) and S&P Hotel / Restaurant / Leisure (+ 1.6%) showed good growth. Durable Goods Orders for July are due in the US today. Their outlook is negative. This stopped the growth of futures for US stock indices. European and Asian stock indices show mixed dynamics and are trading with minimal changes. Meanwhile, according to the agency Refinitiv, the total profit of European companies in the 2nd quarter of this year was good and increased by one and a half times. Japanese companies also showed positive quarterly figures.
Commodity Market news
| Commodities | Change |
|---|---|
| WTI Crude | -0.28% |
| Brent Crude Oil | -0.31% |
| COPPER | +0.5% |
World oil prices rose strongly (almost 8%) on Monday and Tuesday. This was facilitated by a fire on the Mexican oil platform Ku-Alfa in the Gulf of Mexico. This reduced production by about 420 thousand barrels per day (bvd). For now, it is expected to recover by August 30. Meanwhile, in China, an increase in fuel demand is planned due to a sharp decrease in the number of patients with coronavirus and the abolition of quarantine in several regions of the country. There were just 20 new cases of Covid-19 in China yesterday. By the way, the same information contributed to the rise in copper prices, since China consumes half of its world production. The independent American Petroleum Institute announced a decline in US oil reserves for the week by 1.6 million barrels. This was another positive factor for the quotes. Coffee rose after Somar Meteorologia reported a possible drought in Brazil.
Gold Market News
| Metals | Change |
|---|---|
| Gold | -0.62% |
| Silver/US Dollar | -0.51% |
Gold quotes are depreciating today for the second day in a row against the background of a slight strengthening of the US dollar. They failed to gain a foothold above the psychological level of $ 1800 an ounce. An additional negative for precious metals was the reduction in global coronavirus risks thanks to the approval of a new vaccine in the United States and a reduction in new cases of Covid-19 in China.