The US stock indices increased at the end of Tuesday. The CB consumer confidence index jumped to its highest level since the beginning of the pandemic, which had a positive effect on stock indices. The S&P 500 and Nasdaq renewed their all-time highs. But all investors’ attention is now focused on Friday’s Nonfarm Payrolls report. An optimistic labor market data may lead to the revision of monetary policy by the Federal Reserve. Therefore, it is possible that the labor market data will be positive but the indices will fall as the Central Bank may raise the issue of cutting the QE stimulus.
European indices of Western European countries closed the trading day in the green zone. The consumer price index data will be published in Europe today, which is a key indicator of inflation and influences the policy of the European Central Bank. Analysts expect the growth of inflation to slow down, but not so much that the ECB will start revising its monetary policy. Spain and Portugal announced restrictions for unvaccinated British tourists.
Gold and silver futures for August delivery fell yesterday. The reason for the drop is the dollar index, which increased to a one-week peak amid speculation that a contagious strain of Delta coronavirus could negatively impact the global economic recovery. But in the medium term, gold and silver remain at good buying points.
Oil quotes increased yesterday. Today, it has transpired that OPEC+ representatives postponed this week’s production policy meeting. It is the tourist season in the US and Europe now, so the demand for fuel is very high. Considering that the oil reserves have been declining for the last six weeks, this situation plays in favor of the growth of “black gold” quotes. Investors expect another weekly report on the US crude oil inventories today.
Asian stock indices showed mixed dynamics yesterday. On the one hand, the Asian stock market strongly correlates with the US now, where a bullish rally continues. On the other hand, strong pressure on the quotes is caused by the rapid spread of a new strain of coronavirus in Asian countries. Indonesia, Malaysia, Thailand, and Australia are tightening restrictions.
Main market quotes:
- S&P 500 (F) 4,291.80 +1.19 (+0.03%)
- Dow Jones 34,292.29 +9.02 (+0.03%)
- DAX 15,690.59 +136.41 (+0.88%)
- FTSE 100 7,087.55 +14.58 (+0.21%)
- USD Index 92.06 +0.18 (+0.19%)
Important events:
- China Manufacturing PMI (m/m) at 04:00 (GMT+3);
- UK GDP (q/q) at 09:00 (GMT+3);
- German Unemployment Rate (m/m) at 10:55 (GMT+3);
- Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
- US ADP Non-Farm Employment Change at 15:15 (GMT+3);
- Canada GDP (m/m) at 15:30 (GMT+3);
- Chicago PMI (m/m) at 16:45 (GMT+3);
- US Pending Home Sales (m/m) at 17:00 (GMT+3);
- US Crude Oil Reserves (w/w) at 17:30 (GMT+3).
