Global markets advance after mixed session on Wall Street overnight - 2.7.2020

The Dollar weakening is intact today ahead of the US Labor Department report expected to show 1.3 million Americans likely sought unemployment benefits over the last week. At the same time, the non-farm payrolls are expected to rise by about four million in June as many Americans returned to work. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.2% Wednesday despite an Institute of Supply Management report its manufacturing purchasing managers index climbed to 52.6 from 43.1 in May. Readings above 50 indicate an expansion in economic activity. EUR/USD reversed its sliding yesterday while GBP/USD continued climbing as German state statistics office reported lower than feared increase in unemployed in May. Both pairs are higher currently. USD/JPY reversed its rising yesterday while AUD/USD continued its climbing with both up currently.

Futures on three main US stock indexes are advancing today after a mixed session on Wednesday. Stock indexes in the US ended mixed as minutes from the Fed’s June 9-10 meeting showed policy makers agreed to provide clarity in future communications on when the central bank could move rates away from close to zero currently. The three main US stock indexes recorded returns ranging from -0.3% to 1.0%. Late Wednesday the House passed a bill extending Paycheck Protection Program which had received $670 billion in funding, sending it to President Trump for signature. European stock indexes are extending gains currently after an uptick Wednesday despite a warning by German Chancellor Angela Merkel there was a possibility that no deal would be agreed between the European Union and Britain. Asian indexes are higher today led by Hong Kong’s Hang Seng ahead of a US Senate vote on a House bill that targets police units that have cracked down on Hong Kong protesters as well as Chinese Communist Party officials responsible for imposing a strict “national security” law on Hong Kong.

Brent is extending gains today. Prices advanced Wednesday after the US Energy Information Administration report that US crude oil inventories fell 7.2 million barrels last week, the largest weekly decline in domestic crude inventories so far this year. The US oil benchmark West Texas Intermediate (WTI) futures gained: August WTI added 1.4% and is up currently. August Brent crude closed 1.8% higher at $42.03 a barrel on Wednesday.