Wall Street stocks added to gains on Monday as positive investor sentiment prevailed at the start of the week. The Dow Jones Industrial Average gained 1.5%, the S&P 500 advanced 1.5% and the Nasdaq added 1.2%. as a result, Dow extended its winning streak to four sessions as some states started loosening restrictions on businesses.
In Asia, markets were little changed on Tuesday as oil prices remained under the selling pressure after a plunge witnessed overnight. In Hong Kong, the Hang Seng index added 0.77%, China’s Shanghai Composite was up 0.11%, Japan’s Nikkei 225 dipped 0.43%, South Korea’s Kospi declined 0.11%, while over in Australia, the S&P/ASX 200 shed 0.79%. despite some signs of optimism, worries remain about fresh surges of coronavirus cases in some countries, including China. This, coupled with the bearish sentiment in the oil market curbed demand for stocks in Asia.
European stock markets opened slightly higher. The Stoxx Europe 600 edged up 0.2% in early action despite recent comments from the Bank of Japan governor Haruhiko Kuroda who said the global economy is rapidly slowing down. US stock index futures are also positive after some hesitation earlier.
Elsewhere, major currency pairs were little changed early on Tuesday. EURUSD was rejected from intraday highs around 1.0860 and has settled above 1.08 since then. Should the common currency fail to attract demand at the current levels, the pair may retarget one-month lows registered last week. A bearish bias during the European session suggests the downside risks prevail for the time being.
In the oil market, Brent dipped to $22 and is now trying to hold above this level after yesterday’s rout. Traders prefer to get rid of futures ahead of the expiration date due on Thursday while the lingering concerns over energy demand continue to push the prices south, capping recovery attempts. In the short term, Brent could get back below the $22 handle and retarget the $20 figure.
As for bitcoin, the largest cryptocurrency by market capitalization continues its gradual ascent to the $8,000 psychological level. BTCUSD has been challenging the $7,800 intermediate resistance, a break above which is needed for a bullish continuation. Of note, there is strong resistance just below $8,000, where the 100- and 200-DMA converge.
