The upcoming speech by U.S. Federal Reserve chairman Jerome Powell and US retail sales data make investors nervous
Wall Street stocks finished mostly higher overnight despite lingering concerns over the pandemic and further decline in oil prices. The S&P 500 gained 0.26% to register its biggest daily percentage comeback since late-March. The Dow Jones added 0.31%, with both indexes hitting fresh record highs. Meanwhile, the Nasdaq Composite fell 0.20%.
Asian stocks declined on Tuesday, as investors digested turmoil in Afghanistan and worsening China’s economic outlook after weak data revealed at the beginning of the week. also, market players were cautious ahead of the key events of the day – a speech by U.S. Federal Reserve chairman Jerome Powell and US retail sales data. As such, the Shanghai Composite Index shed 2%, Japan’s Nikkei 225 lost 0.36%, the Hang Seng in Hong Kong fell 1.66% and Sydney’s S&P/ASX 200 declined nearly 1%. Tighter scrutiny of China’s internet sector added to negative sentiment in the region.
Following suit, European indexes opened lower today, mirroring a downbeat tone in US stock index futures. The pan-European STOXX 600 shed 0.3% in early trade to notch a one-week low amid tightening regulation in China, tensions in the Middle East, and concerns over the pandemic which is clouding the economic outlook in Asia and elsewhere. On the data front, the Eurozone economy rebounded 2.0% on quarter in the second quarter, meeting 2.0% expected and 2.0% prior.
Meanwhile, the dollar is mostly higher versus major rivals, continuing recovery after a plunge witnessed on Friday. EURUSD remains capped by the 20-DMA that arrives around the 1.1800 figure representing the immediate upside hurdle. Should the US retail sales report disappoint later today, the pair could regain bullish bias as weak data would send the greenback lower across the board.
