Al Ittihad claims top spot in Saudi Pro League after victory over Al Fateh    Saudi delegation participates in the 7th U20 Deans Summit in Brazil    Al-Jubeir discusses with EU officials enhancing bilateral cooperation    GASTAT: Non-oil exports up 22.8% in September 2024    Saudi Arabia to host 28th Annual World Investment Conference in Riyadh    Saudi Arabia allows licensed flour milling companies to export flour    Saudi Arabia joins international partnership initiative to boost hydrogen economy    Israeli drones kill two paramedics, injure four in southern Lebanon    Trump's new attorney general nominee sparks concerns over DOJ independence    Australia drops proposed laws to regulate social media misinformation    Six Palestinians killed in Israeli airstrikes on central Gaza    Riyadh Emir inaugurates International Conference on Conjoined Twins in Riyadh    Al Khaleej stuns Al Hilal with 3-2 victory, ending 57-match unbeaten run    SFDA move to impose travel ban on workers of food outlets in the event of food poisoning    Al Okhdood halts Al Shabab's winning streak with a 1-1 draw in Saudi Pro League    Saudi musical marvels takes center stage in Tokyo's iconic opera hall    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Sitting too much linked to heart disease –– even if you work out    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Equities rise on good economic data, Nasdaq renews record
Published in The Saudi Gazette on 04 - 08 - 2020

GENEVA — US and European stock markets advanced on the back of promising economic data on Monday. Technology stocks led gains. The DAX rallied 2.71% and Nasdaq (+1.47%) renewed record as investors continued piling into technology stocks favorable for the stay-home business conditions.
Meanwhile, US policymakers are discussing on the next fiscal stimulus package, and there is a chatter that Monday talks were productive. We expect a new fiscal aid package of around $1.5-2 trillion to get approval in the coming weeks.
Call it a market rally, or a stock market inflation, the global equity markets are poised for more gains on hope that more stimulus would support economies, or at least the stock prices.
Major Asian indices followed up on New York session gains. The ASX 200 rebounded 1.89%, the Hang Seng advanced 0.83%, as the Nikkei (+1.47%) reversed yesterday's weakness. The US dollar, treasuries and gold were steady.
The Reserve Bank of Australia (RBA) maintained the status quo at Tuesday's meeting but maintained its accommodative approach on expectation that the post-COVID recovery would be uneven and bumpy. The bank pledged to keep its interest rate at the actual all-time low until it sees material progress towards full employment and the 2-3% inflation target.
The AUDUSD remains bid near the 0.7100/0.7150 area, but the broad based USD weakness is responsible for a part of the recent gains, and a further recovery in the greenback could settle the Aussie below the 0.70 cents mark before a further positive attempt.
Released yesterday, strong manufacturing PMI surveys from Asia, Europe, and the US hint at a solid boost in services data, due Wednesday, as well.
The economic calendar for Tuesday is light. The US factory orders are expected to have improved 5% in June versus 8% a month earlier on the back of renewed virus-containment measures and the European factory gate prices are expected to have risen 0.5% m-o-m in June from -0.6% printed a month earlier as a result of gradual wind down of confinement measures and economic normalization.
The EURUSD consolidates near the 1.17 mark, but support at this level could easily give in if we see a further recovery in US dollar and drag the pair to 1.1630, minor 23.6% Fibonacci retracement on April–July rebound.
For Cable, there is probably little hope for an extended rally above the 1.30 mark given that the medium-term outlook remains comfortably negative on the bitter mix of pandemic and uncertain Brexit situation. The Bank of England (BoE) is expected to maintain its rate and asset purchases policy unchanged at this month's meeting.
But there is a chatter that moving toward the year-end, the bank should allow banks to borrow at negative rates, or increase the volume of funds available at the bank rate to further relax the financial conditions. Hence, the dominance of the BoE doves should put a decent downside pressure on sterling against the dollar and the euro.
Else, WTI crude finds buyers below the $40 per barrel on the back of promising manufacturing data, but the equilibrium is fragile near the current levels. Any deterioration in the risk appetite could rapidly tilt the balance to the downside and send the price of barrel tumbling below the $40 level.
— The writer is senior analyst at Swissquote Bank


Clic here to read the story from its source.