European stocks weighted by the tariffs theme
US stocks finished broadly higher overnight as investors shrugged off the persisting uncertainty over the fiscal stimulus bill. Tech stocks turned into a recovery mode after the recent slide, with Apple, Facebook, and Netflix being all up by more than 1.5%. As a result, the tech-heavy Nasdaq Composite rallied over 2%, the S&P 500 added 1.4%, falling just short of a new all-time high while the Dow Jones gained 1.1%.
Asian stocks were mixed-to-higher on Thursday amid fresh signs of U.S. economic recovery after the data showed consumer prices in the United States rose more than expected last month. However, gains in the region were capped by a growing number of COVID-19 cases globally, with over 20.5 million cases as of August 13. On the data front, Japan’s corporate goods price index fell 0.9% in July year-on-year. Nevertheless, Japan’s Nikkei 225 rose by nearly 2%. China’s Shanghai Composite was up 0.43% while South Korea’s Kospi gained 0.89%.
In Europe, stocks were weighted by the tariffs theme after the US government left tariffs on Airbus and a host of other European goods unchanged. Washington said it would maintain 15% tariffs on the planes and 25% tariffs on other European goods. In a knee-jerk reaction to the news, Airbus stocks shed over 2% but managed to trim intraday gains to 1.25% afterwards. A cautious tone in the markets is also due to the upcoming trade negotiations between the US and China due later this week.
Elsewhere, the dollar is under pressure amid the lack of progress on the stimulus package in the US. EURUSD has recovered from the 1.17 area but has encountered local resistance around 1.1840 that could cap further bullish attempts in the near term. Now, traders shift focus to the US jobless claims data that could point to further improvement. However, the release will hardly help to ease the pressure surrounding the greenback, as the situation in the labor market still leaves much to be desired amid the coronavirus crisis.