Optimism made the global markets rally - Wednesday Review, September 2

By: Miguel A. Rodriguez

09:45, 14 September 2020

Most markets gained fueled by a possible economic recovery

The US

The gains were caused by the hope that investors have in a possible stimulus package. Also, consumer spending started to pick-up, which boosted the expectations of an economic recovery. USA30 rose 1.9%. USA500 gained 1.56%, while TECH100 added 0.98%.

Oil prices took a swing yesterday after the #EIA (Energy Information Administration) report showed that oil inventories had shrunk by almost 10 million barrels. Brent Oil fell 2.83% to $44.29 per barrel, while Oil lost 3.32% to $41.34.

Gold lost 1.7% and settled at $1,944.70 per ounce.

The Dollar Index traded at 92.381.


Asia and Australia

The markets were mixed yesterday, considering the data they have received. On one side, they focused on positive US manufacturing activity. 

On the other side, they kept an eye on the candidates for the prime minister position in Japan and on the negative data posted by the Australian Bureau of Statistics. 

Japan225 added 0.5%. 

HongKong45 lost 0.61%

Down under, Australia200 went up 1.61%, even though the country entered a #recession for the first time in almost three decades. 

USD/JPY gained 0.13% and settled at 106.04.

AUD/USD pair lost 0.5% to 0.7338.


Europe

The benchmarks ended the day on positive territory, despite the weak German retail sales figures. Markets chose to focus on a possible economic recovery. 

Germany30 gained 1.5%. France40 traded 1.4% higher, while UK100 was up 1.7%.

EUR/USD lost 0.3% trading at 1.1875.

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Sources: seekingalpha.com, marketwatch.com, investing.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.