On Wednesday, U.S. stocks posted a strong rebound with tech shares gaining the most. The Dow Jones Industrial Average rose 289 points (+1.05%) to 27976, the S&P 500 increased 46 points (+1.40%) to 3380, and the Nasdaq 100 surged 281 points (+2.59%) to 11157.

Nasdaq 100 Index: Daily Chart

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Meanwhile, U.S. House Speaker Nancy Pelosi said Democrats and the White House were still far apart regarding any agreement over a new Covid-19 relief package.

Semiconductors & Semiconductor Equipment (+3.79%), Technology Hardware & Equipment (+2.84%) and Retailing (+2.27%) sectors performed the best. Semiconductor stocks such as Advanced Micro Devices (AMD +7.45%), Qualcomm (QCOM +6.4%) and Nvidia (NVDA +5.44%) were top gainers.

Tesla (TSLA +13.12%) shares jumped after the company announced a 5 for 1 stock split.

Official data showed that U.S. Core Consumer Prices rose 0.6% on month in July, the largest gain since 1991.

European stocks advanced further. The Stoxx Europe 600 Index gained 1.11%, Germany’s DAX 30 rose 0.86% and France’s CAC 40 was up 0.90%. The U.K.’s FTSE 100 surged 2.04% despite the U.K. economy contracting by 20.4% on quarter in the second quarter and confirming a recession.

U.S. government bond prices declined further, as the benchmark 10-year Treasury yield climbed to 0.669% from 0.657% Tuesday.

Following a 5.70% plunged on Monday, spot gold sank further to $1,863 an ounce before bouncing back to close at $1,915. Spot silver price rebounded 2.8% to $25.50 an ounce.

Oil prices increased after the U.S. Energy Information Administration reported a reduction of 4.51 million barrels in crude-oil stockpiles last week, much sharper than a reduction of 2.52 million barrels expected. U.S. WTI crude oil futures (September) jumped 2.5% to $42.67 a barrel.

On the forex front, the ICE U.S. Dollar Index retreated 0.3% on day to 93.42, snapping a three-day rally.

EUR/USD rose 0.4% to 1.1787. Official data showed that the eurozone’s industrial production grew 9.1% on month in June (+10.0% expected).

GBP/USD slipped 0.1% to 1.3037. Government data showed that U.K. GDP declined 21.7% on year in the second quarter (-22.3% expected), while industrial production grew 9.3% on month in June (+9.0% expected)

USD/JPY climbed 0.4% to a three-week high of 106.88.

NZD/USD was flat at 0.6575. The Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected, while expanding the Large Scale Asset Purchase programme up to 100 billion New Zealand dollars from 60 billion New Zealand dollars previously. RBNZ said any future move to a lower or negative official cash rate could provide an effective way to deliver additional monetary stimulus if needed.

Other commodity-linked currencies were broadly higher against the greenback. AUD/USD gained 0.3% to 0.7161, while USD/CAD slid 0.4% to 1.3249, down for a third straight session.

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DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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