Wall Street stocks continued to rally overnight, with Nasdaq jumping to an all-time, and the S&P 500 entering into positive territory for the year. Investors further expressed optimism about the pace of economic recovery after better-than-expected employment data released on Friday. Drugmakers announced promising test results for coronavirus treatments, adding to investor bullishness. The Dow finished up 1.7%, the S&P 500 gained 1.2%, and the Nasdaq Composite ended up 1.1%.
In Asia, stocks followed suit and rose for a ninth session in a row amid further easing of coronavirus lockdown measures. Australia’s S&P/ASX 200 led the gains in the region and surged 2.44%, returning to trade following a Monday holiday while the Nikkei 225 in Japan closed 0.38% lower. Overall, the MSCI Asia ex-Japan index added 1%.
Meanwhile, European equities opened lower again as regional investors seem to lack fresh drivers to continue buying after last week’s rally. In France, CAC 40 sheds 2% after the Bank of France economic forecasts showed that the economy will likely take two years to return to its pre-coronavirus pandemic growth. On the data front, Germany’s trade surplus narrowed further to EUR3.2 billion in April versus EUR10 billion expected and EUR12.8 billion previously.
Elsewhere, the dollar is higher against the European currencies and heading south versus the Japanese yen as risk sentiment is deteriorating. EURUSD extended its retreat from recent highs and registered intraday lows around 1.1240. Eurozone Q1 revised GDP contracted 3.6% versus-3.8% q/q expected.
In other markets, bitcoin remains within a parallel channel, struggling to decide on the direction. BTCUSD lacks the impetus to make a decisive break above the $9,800 intermediate resistance as traders remain cautious following a sell-off witnessed on June 2. On the downside, failure to hold above $9,400 could bring the market focus back to the $9,000 handle. In the short term, the digital currency may extend the current consolidation.
