Wall Street stocks finished higher overnight amid the renewed optimism over the reopening of the economy despite the Federal Reserve minutes showed worries about the lasting damage from Covid-19 on businesses. The Nasdaq Composite Index jumped 2.1%, the Dow Jones Industrial Average gained 1.5%, while the S&P 500 advanced 1.7%. by the way, Amazon and Facebook finished at all-time highs. Facebook announced that it would roll out Facebook and Instagram shops this week.
In Asia, stocks were mixed as market optimism showed signs of waning again, with investors continuing to monitor COVID-19 developments. Johns Hopkins University data indicate that the number of global cases is approaching 5 million already. Japan’s ended 0.20% lower, giving up its earlier gains after the data pointed to a 21.9% slide in April exports year-on-year.
European equities slipped at the open on rising concerns over the U.S.-China trade tensions after the Senate approved new legislation that could bar many Chinese companies from listing shares on U.S. exchanges. In its minutes from the last meeting, the Federal Reserve expressed worries about a potential second wave of infections, which added to nervousness in the markets.
Meanwhile, major currency pairs turned neutral after the chaotic movements earlier in the day. EURUSD was rejected from the 200-DMA around 1.10 yesterday and struggles to extend the rally since then. On the data front, the Eurozone flash services PMI came in at 28.7 in May versus 25.0 expected while manufacturing PMI arrived at 39.5 versus 38.0 expected.
Elsewhere, Italian prime minister Giuseppe Conte said that the worst part of the coronavirus emergency is now behind. Still, the economic data and the statement did little to lift the common currency as traders remain cautious after failed attempts at 1.10. Later today, traders will focus on the US PMIs and jobless claims data that could affect short-term dynamics in dollar pairs.