In the wake of Tuesday’s global rally, the Stoxx Europe 600 Index has found some momentum to push it over to open it, as the banks and the auto sectors advanced. S&P 500 futures swung to a slight decrease of the gains, based on the index of the rise on Tuesday, following data showing a rebound in U.S. retail sales. The yields of the treasury ticked lower.
The asian stocks saw mostly sluggish session, except for actions in South Korea, which have been volatile in the wake of rising tensions with North Korea. The won currency slid against the dollar. The crude oil snapped two days of gains.Investors remain optimistic as they look for fresh catalysts after the President of the Federal Reserve’s Jerome Powell said on Tuesday that the U.S. economy hasa long way to go before it reverses the damage caused by the pandemic. During this time, the second wave and geopolitical concerns provide and because of the caution.
China is climbing the containment measures in Beijing, including the cancellation of flights, as it grapples with how to stem a growing epidemic, while Florida has registered new cases. During this time, the Chinese and the Indians the troops engaged on their border, while North Korean plans fordeployed troops shaken the feeling of Seoul.
“There’s a lot of uncertainty at the moment and it looks to us like the market has really gotten ahead of itself, and that concerns us,” Sandi Bragar, director-general of the Aspiriant LLC, said on Bloomberg TV. “We are in the early stages of this and we are concerned that the recovery will be long and slow, therefore, we adopt a prudent approach to our clients ‘ portfolios.”
What are some of the main events to come:
- The Chairman of the Fed Jerome Powell book on the second day of semiannual testimony to Congress, to the House on Wednesday
- The New York stock Exchange will allow a limited number of market makers to go back to the floor Wednesday.
- The policy decisions of the Bank of England and the Swiss National Bank are due on Thursday.
What are some of the major movements on the markets:
- Futures contracts on the S&P 500 Index rose 0.2% as of 8: 19 a.m. London time.
- Nasdaq 100 Index futures rose 0.3%.
- The Stoxx Europe 600 Index gained 0.3%.
- The MSCI Emerging Market Index rose 0.2%.
- The Bloomberg Dollar Spot Index dipped 0.2%.
- The euro gained 0.2% to $1.1285.
- The british pound was little changed at $1.2569.
- The Japanese yen was little changed at 107.31 per dollar.
- The South Korean Won weakened 0.6% to 1,213.97 to a dollar.
- The yield on 10-year Treasuries dipped a basis point, to 0.75%.
- The yield on two-year treasuries fell less than one basis point to 0.20%.
- The germany 10-year yield gained five basis points to -0.37%.
- Britain’s 10-year yield rose less than one basis point to 0.21%.
The basic products
- The Brent crude oil dipped 0.6% to $40.70 a barrel.
- Gold increased by 0.1% to $1,728.23 an ounce.
- LME zinc gained 1.8% to $2 031.50 per metric ton.
— With assistance from Namitha Jagadeesh