Wall Street stocks surged on the final day of the month and the quarter that was the best since 1998 as stronger-than-expected economic data overshadowed worries about new coronavirus cases. US consumer confidence posted its biggest increase since late-2011 – the Conference Board’s index jumped by 12.2 points to 98.1. Furthermore, the group’s subindex of expectations, based on consumers’ outlook for income, business, and labor market conditions, rose to a four-month high of 106.
Elsewhere, Federal Reserve Chairman Jerome Powell said that getting the coronavirus under control was vital as the U.S. economy rebound. Meanwhile, infectious-disease expert Anthony Fauci warned that new cases could rise to 100,000 a day if behaviors don’t change. As a result, the S&P 500 gained 1.54%, the Dow Jones Industrial Average rose 0.9%, and the Nasdaq Composite climbed 1.9%.
Asian stocks were mixed, struggling for direction on Wednesday amid concern over the coronavirus spread and Sino-American tensions. In Japan, confidence among large manufacturers in the country fell to the lowest since 2009, sending the Nikkei 225 0.75% down. On the positive side, China’s Caixin/Markit manufacturing purchasing managers index rose to 51.2 compared with expectations for 50.5. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%. Hong Kong is closed for a holiday.
European equities trading in a mixed manner on Wednesday, with investors digesting the latest indication of an economic recovery in China. In regional data, Germany’s manufacturing PMI came in at 45.2 in June, exceeding a flash estimate of 44.6 and up from 36.6 in May. The country’s jobless total rising by 69,000 in June, slowing from the 237,000 recorded in May.
Elsewhere, USDJPY dropped dramatically after the recent rally. The pair briefly jumped to three-week highs above 108.00 earlier in the day but failed to extend the ascent and attracted profit-taking. As a result, the dollar corrected lower to the 20-DMA that acts as support around 107.50. Later in the day, the US manufacturing PMI data could affect dynamics in USD pairs.