Stocks rally on the back of strong data
European stocks went off to the races overnight after publishing positive manufacturing and services data.
The EURUSD made some modest gains overnight, lifting above $1.13. The pair began the day at $1.12570 and slipped to lows of $1.12316 early in the day. It rebounded off those lows and climbed to highs of $1.13478 mid-session. It has come off those lows but has managed to stay above $1.13 and is now trading at $1.13172. The GBPUSD also added some value overnight as it climbed above $1.25. The pair started the day at $1.24673 and fell to near-lows of $1.24349 early. The pound bounced off that point and ticked above $1.25 before dropping to lows of $1.24309 mid-session. It once again rebounded as it headed to a high of $1.25312. It is slightly higher at the moment, now trading at $1.25322.
Indices began the day with quite a shock after one of the White House’s trade advisors suggesting that the trade deal between the US and China was over. This was clarified about an hour later by the President and indices bounced back accordingly. The Dow opened at 26,156.48 and plummeted to lows of 25,642.72 on the back of the trade ‘announcement’. It turned around just as quick and added further gains as the Dow hit highs of 26,419.68 mid-session. It has come off those highs and is now trading at 26,186.99. The Dax surged yesterday on the back of much better-than-expected PMI data from Europe. The German index opened at 12,370.92 and tumbled to lows of 12,140.46 on the back of US-China trade concerns. It quickly recovered as trade concerns were alleviated and rallied to a peak of 12,600.33 mid-session. It has come off those highs and is now trading at 12,468.86.
Data published today includes:
US – HPI, Crude Oil Inventories
NZ – Official Cash Rate, RBNZ Rate Statement
Europe – Belgian NBB Business Climate, SNB Quarterly Bulletin, German Ifo Business Climate, Credit Suisse Economic Expectations
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