Daily Market Updates 13.07.2020
Monday 13.07.2020
Asian Session
Asian markets jumped higher today after positive sentiment from Wall Street into the region as investors are expecting to see higher US companies’ earnings. Chinese stocks resumed their bullish momentum with the benchmark of Shanghai index advancing to 1.8%, after its best weekly gains in five years timeframe. Japan’s index rose up by 2%, while South Korea’s Kospi index jumped by 1.7% and Hong Kong’s index rose by 1.2%.
| Asian Stock | Closed |
| Nikkei | +2% |
| Hong Kong HSI | +1.2% |
| China Shanghai SSE | +1.8% |
| KOSPI – South Korea | +1.7% |
US Stocks
US stock futures went higher on late Sunday with Dow Jones on futures index rising by 0.7%, while SP500 on futures index were up 0.5% and Nasdaq futures were up 0.6%. US equities advanced higher amid investors optimism over a coronavirus treatment and all eyes turn to this week’s news for companies’ earnings and Central Banks interest rate decisions. Last week Dow closed higher by 1%, while SP500 closed higher by 1.8% and Nasdaq was up by 4%.
| US Stocks | Closed |
| DOW | +1% |
| S&P500 | +1.85% |
| NASDAQ | +4% |
Major Currencies & Dollar Index
Dollar pushed higher during last Friday, before some downward pressure against euro, due to worries over second wave of coronavirus infections cases. The pair is currently traded above 1.13 price level and investors are now look into this week’s US/ECB microdata decision. On the economic data front, the US Producer Price Index (PPI) dropped -0.2% MoM in June and the core PPI also fell -0.3% MoM. The UK Cabinet Minister Michael Gove said that Brexit transition will likely happen by the end of this year, regardless of the type of the agreement with EU. UK Chancellor Rishi Sunak prepares another aid stimulus package and may lead pound higher against dollar later today. For Pound/Dollar long positions are above 1.2630 with targets at 1.2690 and 1.2720, otherwise below 1.263 indicates further downside to 1.28. Dollar against yen fell to its lowest level in over two weeks and did not challenge yet the levels of 108 resistance and 106.5 support. BOJ It is expected to keep policy steady at a two-day rate review ending on Wednesday.
Gold Market
Gold prices continued advancing higher after a small correction in previous week and the surplus liquidity scenario and safe-haven demand on rising coronavirus cases resume to support the precious metal, as Amit Sajeja said, AVP Research – Commodities & Currencies at Motilal Oswal. As dollar remain weaker gold holding ground above $1800 per ounce. Gold futures market went up by 0.4% to $1808.4, while gold spot is traded at $1805 per ounce.
Oil Market
The International Energy Agency (IEA) announced its positive forecast for the Crude Oil during 2020 and caused the increase in oil prices last Friday, however oil prices eased in early trade. Brent futures fell slightly by 22 cents to $34.02 per barrel, while US crude oil lost around 24 cents to $4031 per barrel. The oil demand is mainly affected by the new virus cases in several US states, and this lead to the imposition of travel restrictions.
European Stocks
European stocks were expected to begin higher today, despite the backdrop of surging coronavirus cases globally, as investors waiting quarterly earnings report from big banks and companies. Stoxx50 European index closed by 0.88% higher at Friday’s closing. Stoxx50 futures added 1.5% and FTSE futures 1.2%.
On the data front 13-07-2020
| Time (GMT+3) | Event | Impact |
| 16:00 pm | GBP BoE’s Governor Bailey speech | High |
| 18:30 pm | USD Fed’s Williams speech | Medium |
| 18:30 pm | GBP BoE’s Governor Bailey speech | High |
