US stock markets finished higher overnight as investors cheered strong manufacturing activity data and a slowing rise in coronavirus cases. Tech giants led the way higher again, with Microsoft jumping over 5.5% after it confirmed that it’s in talks to buy the U.S. arm of TikTok. The Dow Jones Industrial Average rose 0.9%, Nasdaq Composite gained 1.5%, and the S&P 500 added 0.71%.
Today in Asia, equities followed suit and rose across the board. Regional stocks also received a boost from upbeat US economic data. On the other hand, a stalemate in the U.S. Congress over the latest stimulus measures caps upside momentum in the markets. U.S.-China tensions are also heating up amid the TikTok story.
In recent developments on this front, China reaffirmed it will take countermeasures after the US did not renew visas of Chinese journalists.
After a positive start, European stock markets turned mixed on Tuesday amid negative news on geopolitics. Also, investors have already digested strong manufacturing PMIs out of major economies and shifted their focus back on bearish risks in the global markets, suggesting the tone will be cautious on Wall Street as well.
Meanwhile, dollar demand has been waning after yesterday’s strong recovery. The greenback continues to lose its appeal amid an aggressive foreign policy by Trump and the persisting uncertainty surrounding the economic recovery, fiscal stimulus, and the upcoming elections.
As such, EURUSD is now back around 1.18 following a short-lived pullback below 1.17 seen on Monday. Despite the bullish impetus looks modest at the moment, the fact that the common currency bounced and refrained from a deeper downside correction suggests that further gains could lie ahead in the short term, with the overall bullish trend remains intact.
Elsewhere, bitcoin struggles to regain the upside momentum, licking its wounds following a massive sell-off witnessed on August 2. BTCUSD has recovered above $11,000 but struggles to see a more sustainable recovery on Tuesday, with the immediate resistance coming at $11,400.