News & Analysis

Overnight on Wall Street: Thursday 25 June 2020

June 25, 2020

By Deepta Bolaky
@DeeptaGOMarkets

Equity Markets

Global stocks fell following a growing number of virus cases in certain states in the US, Germany and Tokyo. In addition to the resurgence of coronavirus, European bourses experienced more significant losses as trade fears also weighed on risk sentiment. The reports that the US is considering new tariffs on $3.1 billion of exports from France, Germany, Spain and the UK have rattled investors.

World Equity Indices


Source: Bloomberg Terminal

All major US equity benchmarks retreated significantly for the second time this month:

  • Dow Jones Industrial Average erased 710 points or 2.7% to 25,446.
  • S&P 500 lost 81 points or 2.6% to 3,050.
  • Nasdaq Composite fell by 222 points or 2.2% to 9,909.

Currency Markets 

In the FX space, the US dollar strengthened against all G10 currencies. Safe-haven currencies like the Swiss franc and Japanese Yen performed better against the greenback.


Source: Bloomberg Terminal

The Antipodeans currencies were among the weakest against the greenback. The kiwi fell dragged by the virus concerns and a dovish RBNZ on Wednesday.

Commodities

Crude oil prices also struggled to edge higher, dragged by virus fears and weekly oil reports. After the API reported an increase of 1.75 million barrels on Tuesday, the EIA weekly report posted a 1.4 million increase in crude oil inventories. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) are consolidating around $38.27 and $40.54, respectively.

Gold

Gold rallied as investors exited riskier assets and flew to safety. After trading around the $1,780 mark, gold retreated dragged by a stronger US dollar. As of writing, XAUUSD pair is currently trading at $1,764.


Source: Bloomberg

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Trade Balance and Exports (New Zealand)
  • All Industry Activity Index (Japan)
  • Gfk Consumer Confidence Survey (Germany)
  • ECB Monetary Policy Meeting Accounts (Eurozone)
  • Durable Goods, Core PCE, Jobless Claims, Nondefense Capital Goods, GDP and Bank Street Test Info (US)
Friday, 25 June 2020 
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
000.0360.0271.28100
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
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Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs. Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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