Global markets extend Monday’s strong rally
Vrasidas Neofytou
Head of Investment Research
Market Brief, Tuesday, 7th of July, 2020
US stock markets started the week with solid gains of 2% following the better than expected US services activity. Also, the Nasdaq Composite hit a fresh all-time high, with Tesla leading the gains by 13% on robust sales.
Asian markets rose 1% on Tuesday, as the Chinese indices continued to lead gains for a second day after Monday’s 5% profits on growing expectations for an economic rebound in China.
Crude oil prices climbed 1% on Monday, supported by the improved fuel demand in Asia, the lower US crude inventories, and the tighter supplies from OPEC members.
Gold prices climbed near eight-year highs of $1.790 per ounce, gaining support from the weaker US dollar and from the record rise of coronavirus cases in the US, India, and Latin America.
Looking at the forex markets, we can notice the rally of the Chinese Yuan against the US dollar, following the massive gains in the Chinese stock markets and the signs for a faster economic recovery in Asia.
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