Investors' attention still seems to be focused on the American stock market, with particular emphasis on technology companies, which are included in the Nasdaq index. The opening up of the economy and the information about the increase of the infection cases in the USA may support the shares of companies from the Nasdaq index from two sides.
Stock exchanges are growing and the number of cases is rising.
Yesterday, the annual Apple conference took place in the form of a presentation of previously recorded material. During the video broadcast, the share price of the Cupertino company went to new historical highs. This could be influenced by the solutions used in new Apple products and operating system. These events overshadowed statements by, for example, the Governor of Texas, who announced that the coronavirus is spreading at an unacceptable rate, warning that additional measures will be needed to stop the spread of the disease.
The World Health Organization reported that the number of new cases worldwide has reached a record driven by rapid growth in Latin America. The total number of infections exceeded 9 million. In the United States, new infections in Florida indicate a significant outbreak.
Nevertheless, on Monday Dow Jones scored 153 points or 0.6 percent, S&P 500 climbed 21 points or 0.7 percent, and Nasdaq rose 110 points or 1.1 percent.
Better economic data from Australia and Japan
The end of the month is the time of publication of preliminary results of PMI indicators for individual economies. Thus PMI for services in Australia rose sharply in June to 53.2 points from 26.9 points a month earlier. A reading of over 50 points indicates the development of the sector after its previous collapse and the rapid recovery of the Australian economy from the crisis.
We also mentioned this in yesterday's comments, as this may be one of the reasons that may support the Australian currency.
In Japan the services have seen an improvement according to preliminary data. PMI for services rose to a 4-month high of 42.3 points from 26.5 points in May.
The price of gold reflects the gravity of the situation?
While the stock market is focused on an economy that has been opened up despite the ongoing epidemic and the rise in the cases, the gold market may indicate how serious the situation is.
Yesterday, the price of gold reached the highest level since 2012, which seemed to be supported by concerns about the second wave of coronavirus infection, but also by very high expectations for further actions of loosening the fiscal and monetary policy.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
