By Deepta Bolaky
Global stocks were mixed on Tuesday as investors digested both good and bad news. Amid the rising number of virus cases in the US, a vaccine update by Pfizer and BioNTech and a series of better-than-expected manufacturing PMIs supported the stock market.
On Wednesday, Pfizer Inc ad BioNTech announced early positive preliminary data from the most advanced of four investigational vaccines from the vaccine program:
Major US equity benchmarks ended on a mixed note:
Source: Bloomberg Terminal
In the FX space, major currencies were relatively stronger against the US dollar. The vaccine updates and upward revisions of final readings of PMIs in the US and Europe buoyed risk appetite. The ISM Manufacturing report showed that economic activity in the manufacturing sector grew in June, with the overall economy notching a second month of growth after one month of contraction.
The British Pound was among the best-performers despite negative Brexit-related headlines. The Pound rose higher mostly on the back on the overall risk sentiment and a weaker US dollar. The GBPUSD pair rose to a high of 1.2490 on Wednesday.
Source: GO MT4
After the American Petroleum Institute reported a larger-than-expected crude oil stock draw from previous 1.749M to -8.156M in June 26, a positive EIA report drove crude oil prices higher. Commercial crude oil inventories in the United States decreased by 7.2 million barrels in the week ending June 26th. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $39.54 and $42.03, respectively.
As risk sentiment improves following upbeat economic data and positive virus updates, Gold pared some of its recent gains. However, the rising number of virus cases in certain regions and the risk of a second wave of infection remains the element of caution. The XAUUSD pair is currently trading around the $1,767 mark ahead of the Nonfarm Payrolls report scheduled to be released on Thursday.
By Deepta Bolaky
|Friday, 03 July 2020 |
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