News & Analysis

Overnight on Wall Street: Tuesday 07 July 2020

July 7, 2020

By Deepta Bolaky

Equity Markets

Global stocks continue to rally despite the rising number of infections forcing some states to reinstate some lockdown restrictions. The stock market is being supported by improving economic data, extremely loose monetary policies and massive government spending plans.

Major US equity benchmarks ended with significant gains:

  • Dow Jones Industrial Average added 460 points or 1.8% to 26,287.
  • S&P 500 rose by 50 points or 1.6% to 3,180.
  • Nasdaq Composite added 226 points or 2.2% to 10,434.

Source: Bloomberg Terminal

Currency Markets

In the FX space, major currencies were relatively stronger against the US dollar. Safe-haven currencies like the Japanese Yen and the greenback were among the worst-performing currencies dragged by the broad optimism in the markets. The Euro and the Antipodeans currencies advanced higher lifted by the improvement in risk sentiment and a weaker US dollar.

The Aussie dollar is trading just below 0.70 US cents ahead of the RBA Interest Rate Decision and Statement.

Source: Bloomberg Terminal

On the economic calendar, we are seeing an overall improvement in the Markit Services and ISM Non-Manufacturing sector:

  • ISM Non-Manufacturing PMI moves from contractionary to expansionary level at 57.1 compared to 45.4 for the previous month.

Source: Bloomberg

  • ISM New orders also expanded to 61.6 vs 41.9 last month
  • ISM Employment increased to 43.1 vs 31.8 in May reading
  • ISM Inventory sentiment registered 55.9 vs 55.1 in May reading
  • ISM Prices paid 62.4 vs 55.6 last month


Last week, the oil market found some support on the economic recovery narrative and bullish inventory reports. Ahead of the weekly reports, crude oil prices are trading at familiar levels as the demand outlook remains fragile due to the fears of a second wave of coronavirus outbreak that can halt activities. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $40.70 and $43.10, respectively.


Gold edged higher despite the improvement in risk appetite as the rising number of virus cases in certain regions and the risk of a second wave of infection remains the element of caution. The precious metal also found support on the weaker US dollar. As of writing, the XAUUSD pair is currently trading around the $1,785 mark- near 7-year high.

By Deepta Bolaky

Key upcoming events

  • NZIER Business Confidence and GDT Price Index (New Zealand)
  • Overall Household Spending and Leading Economic Index (Japan)
  • RBA Interest Rate Decision and Rate Statement (Australia)
  • Industrial Production (Germany)
  • Ivey Purchasing Managers Index (Canada)
Wednesday, 08 July 2020 
Indicative Index Dividends
Dividends are in Points

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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