News & Analysis

Overnight on Wall Street: Thursday 06/02/2020

February 6, 2020

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

Wall Street rallied to fresh new highs on Wednesday amid speculations of a possible breakthrough in the coronavirus treatment and upbeat employment reports.

  • Dow Jones Average Industrial added 483 points to finish at 29,291.
  • S&P500 ended 1.1% higher at 3,335.
  • Nasdaq Composite added 0.4% to close at 9,509.

Energy stocks led the gains as oil prices rebounded strongly to the upside after news that a drug has been developed for the 2019-nCov. The WHO later played down such reports that researchers had made a significant breakthrough.

Currency Markets

In the FX market, major currencies were mixed against the US dollar. Another batch of strong economic data providing more insights on the US economic health continues to support the greenback.

US Dollar Index

ADP Employment Change was robust at 291k compared to 199k in December while PMI figures came out mixed. The US dollar index which measures the performance of the greenback against a basket of currencies rose above the 98 levels and is currently trading at 98.11.

US Dollar Index (Daily Chart)

EURUSD

Better-than-expected PMI reports were overshadowed by disappointing Retail Sales data in the eurozone area. The EURUSD fell on the mixed data and a strong US dollar. The pair dropped below the 1.10 level leaving the shared currency vulnerable to more losses.

EURUSD (Daily Chart)


Source: GO MT4

Commodities

Oil prices rebounded on the speculations that a vaccine for the coronavirus has been developed. After bottoming to the lowest level in more than a year, both WTI and Brent Crude rose to $51 and $55 respectively.

USOUSD and UKOUSD (Daily Chart)


Source: GO MT4

Gold made marginal gains despite a stronger US dollar as risk appetite remains fragile. The precious metal is currently trading at $1,555.

XAUUSD (Hourly Chart)


Source: GO MT5

Key Upcoming Events

Imports, Exports, Trade Balance, Retail Sales, NAB’s business Confidence, and AiG Performance of Construction Index (Australia)
BoJ’s Masai Speech (Japan)
Factory Orders (Germany)
Economic Bulletin, European Commission releases Economic Growth Forecasts (Eurozone)
Nonfarm Productivity, Jobless Claims, and Unit Labour Costs (US)

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Thursday, 6th February 2020
Indicative Index Dividends
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016.2090.6580.1022.65600
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