Daily Market Updates 03.07.2020

Friday 03.07.2020

Asian Session

Asian equities pared gains on low volumes with gains for Japanese stocks falling, by about 25% lower than the previous month’s average and Chinese stocks outperformed, while Hong Kong and South Korea stocks increased. Shanghai Composite index jumped by 1%, while Hong Kong’s index jumped by 0.8%. Japan’s index Nikkei went up by 0.7% and South Korea’s Kospi index rose by 0.72%.

US Stocks

Us stocks market closed today due to the independence days which is about tomorrow. The holiday this year may carry a unique significance to markets and an economy that have been affected by a pandemic that has claimed the lives of more than a half-million people worldwide and infected 10.5 million thus far. Dow Jones and the SP500 index have gained nearly 40% since late-March low as the COVID-19 pandemic roiled investor confidence, and the Nasdaq Composite gained nearly 50% over the same period. Dow Jones increased by 0.4%, while the SP500 index, rose by 0.5%. The Nasdaq Composite Index rose by 0.5%

Major Currencies & Dollar Index

Non-Farm Payrolls report yesterday showed a greater than expected of people employed during June month by 4.8 million workers against 3 million workers. Although positive news on jobs report dollar remain vulnerable against euro as the pandemic infection increase day by day in United States. The pair is now traded at 1.1235. Pound against dollar struggling below 1.25 as Brexit remains stuck. Pound is trading below 1.25, against dollar as Top-level EU-UK Brexit talks postponement until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. All eyes turn to the UK final Services PMI for June which may confirm the initial reading of 47 and led pound to some new selling pressure. As the UK extends its reopening, the country is significantly exposed to new coronavirus crisis, with a potential to affect its currency. Dollar/Yen is currently traded at 107.56 and almost flat on the day following a move higher within at 107.33 and 107.72 range. The pair edged higher after the US jobs report which was better than expected. The pair now seems poised to aim back to Tuesday’s daily closing high resistance near the 107.90 region. Yen also found support from Japan’s PMI news which showed an increase from 26.5 to 45 in June.

Gold Market

Gold prices remained at highs as strong US jobs data and hopes of a coronavirus vaccine has lifted global risk sentiment. But analysts say that the increasing number of coronavirus cases and hopes of more stimulus will aid gold at lower levels. After yesterday positive US jobs report gold edged lower with spot gold falling by 0.1% to $1,773.13 per ounce, while US gold futures dropped by 0.3% to $1,785.60 per ounce. A sustained break above the $1780 price level will revive the momentum for a test of the $1800 mark.

Oil Market

Crude oil prices advanced higher after better than expected US jobs report yesterday. U.S. crude futures for August delivery increased about 2.1% to $40.65 per barrel on the New York Mercantile Exchange, closing at their highest level since March 6. WTI increased by 1.15% higher yesterday above $40 per barrel again. At the peak of the pandemic back in April, global demand collapsed by 25-25, which represents around 28 million barrels per day and the new OPEC production cut agreement is helping the market to rebalance. Brent is currently trading at $42.80 per barrel.

European Stocks

European stocks advanced higher yesterday as U.S. economy adds 4.8 million jobs in June, adding to the global optimism engulfing investors. The pan-European Stoxx600, rose by 1% in early trading as hopes of a vaccine continued to buoy investors. DAX30 also increased by 2.8% higher and UK100 added 1.33%.

On the data front 03-07-2020