Stocks, Bonds, and Currencies
Analysis Market Overview

The Resurgence of Stocks, Bonds, and Currencies

The sun shines again on the American economy as the stocks continue to rise, and the US manufacturing gets closer to expansion. Concurrently, another round of stimulus checks to US citizens is a step in the right direction.

Currently, the stock market takes a sigh of relief as the S&P 500 reaches its two-week record high. Consequently, investors continue to concentrate on signs that the US economy will hopefully bounce back from the shadows of lockdowns.

That said, tensions arose among investors who heard about the end of the trade deal due to estimated future plunges. Fortunately, the rebound continued once President Donald Trump made a contradictory statement.

Gradual Stability of Equities, Oil, and Manufacturing

Yes, treasuries saw little to no change as the decade of yielding at 0.71%. Conversely, the USD saw a devaluation drop for another consecutive day. The good news is that the equities saw an increase in Asia and Europe. Gold, however, made the headlines as it breaks the previous highest records of high since 2012. Similarly, oil reached $41 each barrel in New York.

Stoxx Europe 600 index, for instance, also saw positive economic output data. As a result, banks and car manufacturers are optimistic about the prospects of the euro area. Bayer AG saw an increase of up to 7% after a report came into light that the firm is closer than ever to resolve its Roundup weedkiller litigation. Collectively, the Euro yields relatively higher than European bonds.

The Economic Rebound Continues

As of now, investors are hoping and betting that outpour of trillions of dollars in the form of stimulus packages by federal governments and central banks around the world will provide economies a new shield to get through the pandemic crisis.

In fact, June PMIs might be able to normalize business activity in the world’s largest economy and pave the way for another phase of rebound. Technically, the euro region PMI took into the account risk assessment of market mood. However, the underlined pressure of slow and long economic recovery will impose more challenges for struggling companies due to weak demand.

Anthony Fauci, the official US infectious-disease expert, is right about the current state of the pandemic. Contrary to misguided perception, the virus has no plans to take the summer off. Therefore, there should be more measures to curb the spread of the virus in the US.

Key Upcoming Events

The IMF is set to release new growth projects of 2020. Also, there is an anticipation of rebalanced Russell indexes, while the GDP and durable goods data are also due to release.

From Stocks to Commodities: Essential Market Moves

Stocks

The S&P 500 index rose to a whopping 0.9% in NY, which is the highest surge since last week. Similarly, Dow Jones also saw an increase of 0.9%. On the other hand, the Nasdaq index saw an increase of 1.3%, which is its eight consecutive highest record. Additionally, The MSCI All-Country World also rose to 1%, representing its highest increase over a week.

Source: TradingView

Currencies

The outlook of the currencies is not as bright as the resurgence of stocks. Currently, the USD took a plunge of 0.6%, which is the most significant drop in the past three weeks. Ironically, the Euro saw an increase of 0.6% (i.e., $1.1331) increase. Japanese Yen also saw a rise of 0.6% (i.e., $106.29), the highest streak of the past seven weeks.

Bonds

Treasures saw an increase of 0.72% out of its one basis point of a 10-year yield. However, the 10-year yield of Germany went up three basis points of -0.41%. Britain also managed to get two basis points of 0.217% in its 10-year yield.

Commodities

The crude oil prices in West Texas rose to 0.6% (i.e., 41.12 per barrel), which is the highest of the past 15 weeks. Gold strengths with 0.6% increase (i.e., $1,765.12 per ounce) as the highest surge of the last eight years.

Source: TradingView

Bottom Line

The Impact Payments were, in fact, quite effective to facilitate American citizens in dire times despite slow administrative systems. However, it is imperative to realize that economic and health upheaval is far from over. Therefore, another series of payments would work in favor of the economic rebound.

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