Interior minister graces graduation ceremony at Naif Arab University for Security Sciences    Prophet's Mosque imam underscores Islam's core values at peace conference in India    Saudi, Indian foreign ministers co-chair Cooperation Committee meeting in New Delhi    198 new sites documented in the National Antiquities Register    Cityscape Global 2024: Saudi real estate sector booms with SR180 billion in new projects    PIF to sell 2% stake in stc via accelerated book-building    SAMA issues rules for opening electronic wallets    TGA suspends 2 passenger transport applications and an application for food delivery    South Korean actor Song Jae Lim found dead at 39    Trump names Fox News host Pete Hegseth as defense secretary pick    There is nowhere safe in Gaza, UNRWA director says    Archbishop of Canterbury resigns over Church abuse scandal    US says it will not limit arms transfers to Israel    Don't sit on the toilet for more than 10 minutes, doctors warn    Saudi Champion Saeed Al-Mouri scores notable feat in Radical World Championship in Abu Dhabi with support from Bin-Shihon Group    'Marvels of Saudi Orchestra' to dazzle audience in Tokyo on Nov. 22    Rita Ora is tearful in tribute to Liam Payne at MTV Awards    France to deploy 4,000 police officers for UEFA Nations League match against Israel    Al Nassr edges past Al Riyadh with Mane's goal to move up to third    Al Ahli continues strong form with 2-0 win over Al Raed in Saudi Pro League    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    Muted Eid celebrations for millions of Nigerian Muslims    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.



Nasdaq renews record; pound up on encouraging data
Published in The Saudi Gazette on 21 - 08 - 2020

GENEVA — US equity indices edged higher, as Nasdaq (+1.06%) rallied to a new record on Thursday, on concerns that the COVID-19 environment would last longer and maintain the strong demand in tech and online services.
China's e-commerce giant Alibaba announced better-than-expected second quarter results, with 34% rise in sales growth, a touch lower than the pre-pandemic quarter, where the performance was boosted by China's most popular Single's Day shopping festival.
The strong numbers hinted at a decent recovery in Chinese consumer demand and boosted appetite in Chinese equities. Shanghai's Composite gained 0.78% as the CSI 300 (+1.17%) advanced despite uncertain trade relations with the US.
On the trade front, the latest reports suggest that the US oil exports to China should approach record high levels in September as a sign that China works hard towards meeting its phase-one commitments. Chinese and US officials are due to meet soon to review the existing trade deal, but there is not an exact date yet.
For now, China remains resilient to US attacks to avoid worsening the situation and disturbing the market, but given the US' aggressive approach, the outcome of an eventual meeting, if any, seems unpredictable. But investors have low expectations regarding the upcoming US-China talks. Therefore, any good news could give a positive spin to the market sentiment.
Data-wise, the US new jobless claims rose above a million last week. The existing claims fell a touch below the 15 million mark, but the broader picture remains gloomy as the pandemic continues weighing on businesses. The IRS estimates 37.2 million fewer jobs in 2021 compared to their forecast a year earlier.
The US dollar remains vulnerable as the 10-year treasury yield declines to 0.65%. Inflation in Japan hit a four-month high of 0.3% m-o-m in July, mainly due to a rise in food prices, though the core inflation remained flat at 0% y-o-y.
The Australian services PMI took a dive below the 50 mark on the back of rising coronavirus cases. But the retail sales grew 3.3% m-o-m in July, faster than analyst estimates. The AUDUSD has a steady grip near the 0.72 mark on the back of mixed data, and a softer US dollar.
Due Friday, the advance PMI figures in Europe and Britain should hint at a continuous rebound in economic activity both in manufacturing and services. But the August numbers could be revised to the downside due to the mounting COVID-19 cases across Europe, although the governments are unwilling to bring strict lockdown measures on the table to spare their economies from a second-wave hit.
There is now a chatter that the rising coronavirus cases in Europe and falling cases in the US could soon be a trigger for the much-expected downside correction in the EURUSD. The pair tested a fresh top above the 1.19 for the third week, but the bulls' battle becomes harder approaching the thick layer of 1.20 offers.
British retail sales printed a 3.6% m-o-m advance in July, beating the analysts' estimate of 2%. The yearly figure turned positive for the first time in five months, hinting at a gradual recovery in activity, although the headline figures hide important discrepancies among the underlying businesses.
Meanwhile, the public sector borrowing fell unexpectedly below 26 billion pounds in July. The kneejerk positive reaction to encouraging data pushed the GBPUSD above the 1.3250 mark. We could see a further advance in sterling against the weakening US dollar before the weekly closing bell. But the medium-term sterling outlook remains negative on lingering pandemic and Brexit risks.
Gold remains bid above the $1,925 per oz. Soft US dollar and yields, and a solid rebound in global inflation expectations amid massive fiscal and monetary stimuli, continues giving support to the yellow metal as investors see opportunity in topping up their holdings in price retreats.
WTI crude is preparing to close the week a touch below the $43 per barrel. The USDCAD remains offered near and above the 1.32 mark as steady oil prices and weak US dollar offer favorable conditions for a further appreciation in the Loonie.
— The writer is senior analyst at Swissquote Bank


Clic here to read the story from its source.