Investors are finding a bit more of a footing after a poor start to the week
US stock markets were slightly higher on Wednesday, with indices snapping a three-session sell-off. As such, investors picked up shares at lower levels after a solid sell-off. The Dow Jones Industrial Average gained 0.18%, the S&P 500 climbed 0.29%, and the Nasdaq Composite advanced 0.41%. Still, gains were cautious as market players remained focused on the Fed Chairman Jerome Powell’s speech at the Jackson Hole on Friday. On the negative side, fresh data showed that US pending homes sales fell last month.
Tracking gains in Wall Street, Asian stocks finished mostly higher on Thursday as risk sentiment continued to improve after the recent sell-off. Hong Kong’s Hang Seng index led the gains in the region to add nearly 3% even as the Stock Exchange of Hong Kong delayed the market open today, citing extreme weather conditions stemming from typhoon Ma-on. Japan’s benchmark Nikkei 225 edged up 0.58%, Australia’s S&P/ASX 200 gained 0.71%, and the Shanghai Composite in China was little changed.
In Europe, equities opened in positive territory, with US stock index futures rallying in early pre-market deals as markets are finding a bit more of a footing after a poor start to the week. On the data front, Germany’s final GDP came in at +0.1% in the second quarter versus the preliminary estimate of 0.0% q/q. The final revision saw a marginal expansion in the German economy in April-June. However, recession risks persist as a gas crunch and energy crisis looming over the winter months.
Meanwhile, the US dollar keeps retreating from recent peaks seen around 109.30. The USD index is holding slightly above the 108.00 mark, shedding nearly 0.5% on Thursday as the positive shift in risk sentiment weighs on the safe-haven dollar. Later in the day, the greenback could be affected by the second estimate of the second quarter US GDP and the weekly initial jobless claims data. As the dollar fell, EURUSD advanced beyond parity to settle around 1.0020 in early European deals.
