The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Risk-off is back. All eyes on the US data.
Information is not investment advice
The market sentiment deteriorated as the USA and some other countries are suffering from the new virus resurgence. Investors worry that the economic reopening may be delayed.
- Australia has recorded its largest peak in COVID-19 cases since April. The US states such as Florida and California exceeded daily highs.
- Investors are concerned that governments may impose strict restrictions and lockdowns again. That may lead to devastating results for most businesses. Stocks dropped on that worries.
- Margie Patel, portfolio manager at Wells Fargo Asset Management, said that stocks just need to take a breath and then they may continue rallying.
- The USA revealed new tariffs on export goods from the Eurozone. The EU considers to ban the entry for Americans. The US-EU tensions began to heat up.
- The IMF lowered its guidelines for the global economic recovery and predict deeper downturn and slower rebound.
S&P 500 dropped dramatically, but the 200-day moving average stopped it at the 3,020 level. If it manages to cross this line, it will open doors towards the key psychological mark at 3,000. Follow the release of the US GDP and unemployment claims at 15:30 MT time. It will be the strong catalyst for the further falling, if the data comes worse than expected. Otherwise, if the market catches the risk-on stimulus after the report, stocks may soar. In this case, look for resistance levels at 3,110 and 3,225.
Gold is headed to new highs. Market participants found it the most attractive safe-haven asset amid the current uncertainty. The US dollar gains too, but gold still prevails. If it crosses the resistance at 1,775, it will surge to 1,800. Support levels are 1,717 and 1,700. Again, the US data will have a huge impact on gold. Don’t miss out.
AUD/USD has tumbled significantly as Australia suffers from the largest high in coronavirus cases. Look for the break below the 0.6830 level, as the pair may fall even deeper to the next support at 0.6800. Resistance lines are the 50-day moving average at 0.6890 and the high of June 23 at 0.6920.
The US GDP and unemployment claims at 15:30 MT time will make the market really volatile. Follow the report!
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.
The RBA will make a rate statement on August 4 at 7:30 MT time.