News & Analysis

Overnight on Wall Street: Tuesday 28 July 2020

July 28, 2020

By Deepta Bolaky

Equity Markets

Global stocks started the week on a mixed note. European bourses slipped on Monday while major US equity indices pushed higher ahead of one of the busiest weeks on the earnings front. A few clusters of COVID-19 cases in certain European countries weighed on risk sentiment. The UK has also ordered arrivals from Spain to self-isolate for 14 days following a spike in the number of infections. 

Despite the current uncertainties on the virus front, Wall Street ended in positive territory:

  • Dow Jones Industrial Average added 115 points or 0.4% to 26,585.
  • S&P 500 rose by 24 points or 0.7% to 3,239.
  • Nasdaq Composite added 173 points or 1.7% to 10,706.

Currency Markets

In the FX space, major currencies were mostly stronger against the US dollar. The US dollar is being sold-off dragged by virus woes, the struggles of Congress to agree on the next stimulus package and geopolitical tensions with China.

Following a lack of macroeconomic data, the forex market was mostly driven by the broader sentiment of the markets. Most pairs traded in familiar levels seen recently as the attention was mostly on safe-havens assets like gold.

The shared currency continues to eke out gains against its peers following the historic stimulus package and the better control of the pandemic. However, traders will likely monitor the few clusters seen in certain European countries. As of writing, the EURUSD pair is currently trading higher around the 1.17 level.

EURUSD (Monthly Chart)

Source: GO MT4


Crude oil prices are stable around familiar levels but remain trapped by bearish oil reports and the mounting number of coronavirus cases. The improving fundamentals are overshadowed by the uncertain demand outlook. We expect traders to keep monitoring weekly COVID-19 infections to gauge oil demand. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading higher around $41.71 and $43.41, respectively.


Gold’s rally seems unstoppable as the world grapples with a pandemic. The XAUUSD pair broke the record high seen during September 2011as risk sentiment is fragile and investors are concerned about the overwhelming rise in the number of coronavirus cases that is threatening to plunge the global economy in a deeper recession. Given the ongoing uncertainty and geopolitical tensions, investors are hedging with safe-haven assets fearing a reversal in the sharemarket. As of writing, the XAUUSD pair is currently trading at $1,972.

Source: GO MT4

By Deepta Bolaky

Key upcoming events

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  • S&P/Case -Shiller Home Price Indices and Consumer Confidence
Wednesday, 29 July 2020 
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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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