Wall Street stocks bounce back after Covid Delta-fueled retreat. The Dow, S&P 500 and Nasdaq all climbed as focus shifts back to optimism over economic growth and recovery in corporate profits. The Dow rose 1.62%, the S&P 500 edged up by 1.52% and the Nasdaq by 1.57%. The 10-year US treasury yields plunged to a low of 1.1293 but bounced back and closed 3 bps higher on the day. The DXY bulls battle 93.00 on their way to the yearly top, currently trading at 93.079. Oil prices showed a horizontal price movement after prices tumbled on Monday post OPEC+ agreement.
Asian markets also recovered at open today following the Wall Street bounce back. Japan’s NIKKEI climbed up 0.51% trading at 27528.12. Australia’s ASX rose 0.85%, and China’s CSI also by 0.83%, currently trading at 5151.26. HANG SENG extends losses with a fall of 0.57% as Beijing’s tight regulation continues to weigh on internet plays.
European stock markets are seen opening in a mixed fashion on Wednesday, stabilizing after the week’s volatile start with the earnings season continuing and ahead of a policy meeting by the European Central Bank. At 2:10 AM ET, the DAX futures contract in Germany traded 0.1% lower, while CAC 40 futures in France climbed 0.3% and the FTSE 100 futures contract in the U.K. rose 0.2%. Stock indices in Europe closed higher on Tuesday, with the DAX up 0.6%, the CAC 40 up 0.8% and the FTSE 100 0.5% higher, rebounding after Monday’s sharp losses after fears the recent surge of Covid-19 cases will derail the global economic recovery.
The European Central Bank starts a two-day meeting on Wednesday, after raising their inflation goal to 2% earlier this month. President Christine Lagarde recently raised interest when she promised “interesting variations and changes” to Thursday’s policy announcement and her press conference.
British public sector net borrowing fell to 22.8 billion pounds ($30.95 billion) in June, 5.5 billion pounds less than a year earlier when the public finances were feeling the full force of the coronavirus pandemic, official data showed on Wednesday. Public debt as a share of GDP, excluding public sector banks, was 2.218 trillion pounds or 99.7% of GDP in June, its highest since March 1961.
The Russian stock market finished trading on the rise following oil that had started to rise and amid improving sentiment in Europe. The Moscow Exchange index increased by 0.3% to 3704.40 points. The RTS index rose by 0.51% to 1567.28 points. The growth leaders among blue chips were Aeroflot, Gazprom Neft and Sberbank.
Oil was down Wednesday morning, with investors digesting a surprise build in U.S. crude oil supplies and continuing to assess the impact of surging COVID-19 cases on fuel demand.
Brent oil futures were down 0.46% to $69.03 by 1:38 AM ET (5:38 AM GMT) and WTI futures fell 0.51% to $66.86.
U.S. crude oil supply data from the American Petroleum Institute released on Tuesday showed a build of 806,000 barrels for the week ended July 16. Forecasts prepared by investing.com had predicted a draw of 4.167 million barrels, while a 4.079-million-barrel draw was recorded during the previous week.
Gold was down on Wednesday morning in Asia. The dollar strengthened and fears about the recent surge in COVID-19 cases involving the Delta variant also eased, thus increasing investors’ risk appetite. Gold futures edged down 0.18% to $1,808.05 by 1:10 AM ET (5:10 AM GMT).