Wall Street equities finished higher on Wednesday, rising for the third consecutive day as investors continued to express optimism over the economic recovery after the pandemic crisis. The S&P 500 rallied to an 11-week high and closed above the 3,000-point mark for the first time since early March while the Dow Jones Industrial Average crossed above 25,000 points. The Nasdaq index added 0.8% late in the session after Micron Technologies forecast earnings that were ahead of estimates.
Today in Asia, stocks were mixed but mostly positive as countries continued to loosen lockdown measures and restart their economies. On the negative side, China’s proposed national security laws for Hong Kong re-ignited protests in the city and ratcheted up the tension with the US and Hong Kong as well. As a result, Hang Seng dipped 0.72% at the end of the session while China’s Shanghai Composite gained 0.33%.
European stock markets opened in the positive territory despite China’s National People’s Congress approved the controversial proposal to impose a new national security law for Hong Kong. It looks like investor sentiment is further driven by hopes for a recovery in the global economy which helps to shrug off rising tensions between the U.S. and China. The pan-European Stoxx 600 climbed 0.7% in early trade. As a reminder, yesterday, the European Commission unveiling plans for a 750-billion-euro recovery fund as the region faces a deep economic crisis amid the coronavirus pandemic.
Elsewhere, the dollar is flat on the day against most counterparts. EURUSD was rejected from fresh highs around 1.1030 and has settled around the 200-DMA that comes around the 1.10 significant level. A daily close relative to this mark will help to figure out further direction in the pair. In his latest remarks, the ECB’s Villeroy said that negative interest rates are an effective policy tool, which added to some pressure surrounding the common currency. In the immediate term, the EURUSD pair may extend consolidation around 1.10 before it decides on direction. On the downside, the nearest support arrives at 1.0980.