The Nasdaq climbed to a record high on Monday boosted by hopes for a fresh US fiscal stimulus package and tech shares rally. The Nasdaq Composite surged more than 1.5% to 10,902.80, beating its previous record high close on July 20. Microsoft jumped 5.6% on Monday after it confirmed that it is in talks to buy the US arm of TikTok. The Trump administration gave the company 45 days to make a deal before TikTok's US operations could be banned.
On Monday Wall Street and European markets ended higher supported by strong manufacturing data from Germany, China, and the US. On the earnings calendar, American International Group AIG (NYSE: AIG) announced better-than-expected Q2 earnings on Monday. While the company revenue misses Wall Street estimates.
Crude oil price trading unchanged on Tuesday as Investors fears about oversupply in oil markets after OPEC+ decided to ramp up production starting this month.
In the currency market, both Euro and Pound rebounded from the psychological levels of 1.1700 and 1.3000. At the time writing both pairs trading around 1.1770 and 1.3050. Meanwhile, the Australian dollar trading steady on Tuesday after RBA hinted that a recovery from the COVID-19 crisis is now underway in most of Australia.
Gold price trading sideways on Monday after hitting a fresh all-time high on Monday. If the price break above yesterday’s high the next crucial level to watch $2000.
On the data front, the Reserve Bank of Australia kept its cash rate unchanged at a record low of 0.25%. RBA Governor Philip Lowe said the accommodative policy would be maintained if it is required. Meanwhile, during the European session, the ECB Chief Economist Philip Lane said the central bank is committed to providing the support needed to boost the economic recovery.
Moving ahead to the North American session, the investors will closely monitor the fresh updates about the US fiscal stimulus package. The Republicans want the package not to exceed more than $ 1 trillion while Democrats want to offer a $3 trillion package.
The number of people infected with the coronavirus across the world surpassed 18.2 million, of which at least 693 thousand people have, according to data released by the Johns Hopkins University. On Monday, the US saw a spike of 46,321 new coronavirus cases in the last 24 hours, taking its total to 4,711,323. Mexico reported 4,767 new confirmed coronavirus cases and 266 additional fatalities, bringing the total in the country to 443,813 cases and 48,012 deaths.
Dollar Index: The greenback failed to break 94 levels on Monday and retreated to below 93.50 on Tuesday.
The important levels to watch for today: Support- 93 and 92.50 Resistance- 94 and 94.60.
EUR/USD: The currency pair recovered from early session lows and at the time writing the pair hovers near 1.1800(psychological level).
The important levels to watch for today: Support- 1.1760 and 1.1700 Resistance- 1.1810 and 1.1840.
Quote of the day: Invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price- Benjamin Graham.