Federal Reserve Chairman Jerome Powell said the economic outlook has brightened
Wall Street stocks were mostly higher overnight, as upbeat earnings reports and economic data lifted investor sentiment. Federal Reserve Chairman Jerome Powell said the economic outlook has clearly brightened in the United States, but the economy was not out of the woods yet. Energy stocks gained due to higher oil prices. The Dow Jones Industrial Average rose 0.7%, the S&P 500 gained 0.27%, and the Nasdaq Composite dropped 0.48%, as technology stocks lagged.
Today in Asia, equities were higher amid signs of recovery from the coronavirus pandemic. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.05%. Hong Kong’s Hang Seng rose 0.70%, Australia’s S&P/ASX 200 gained 0.56%, and the Kospi added 0.64%. Tokyo and Shanghai were closed for holidays.
European stocks opened amid optimism about the region’s reopening plans. The Stoxx 600 Index climbed 0.4% in early trade after the European Union announced plans to reopen its borders to tourists. The UK shares were outperforming after a holiday-extended weekend, with the FTSE 100 rising 0.5%. U.S. stock futures were flat in premarket trading on Tuesday.
On the data front, the seasonally adjusted IHS Markit/CIPS UK manufacturing PMI was revised higher to 60.9 in April versus 60.7 expected and 60.7 first estimate. However, the cable failed to capitalize on the report as the resurgent demand for the greenback kept the pair under pressure following yesterday’s recovery. Now, GBPUSD needs to hold above the 20-DMA in order to stay afloat in the near term.
Elsewhere, bitcoin price has been losing ground for the third day in a row already. BTCUSD slipped to April 30 lows around $54 600 before bouncing in recent trading. The coin managed to get back above the 20-DMA but could see more losses before a bullish reversal takes place.