Asian markets were higher during Monday’s trading session, with the Chinese and Hong Kong indices leading the gains with more than 5%, despite the record spike in virus cases around the world during the weekend.
The World Health Organization said on Saturday that more than 210,000 coronavirus cases were confirmed over a 24-hour period, with more than 10.9 million cases in total.
Florida and Texas reported 11,445 and 8,258 new cases respectively Saturday, the highest single day totals for both states since the pandemic began, representing about 43% of the more than 45,000 daily cases reported in the US.
The U.S. has reported more than 2.8 million infections since the pandemic hit the nation and at least 129,871 deaths, according to data from Johns Hopkins University.
The Shanghai composite index CSI 300 soared 5.34%, Hong Kong’s Hang Seng index also saw robust gains increasing by 3.8%, while Japanese Nikkei and South Korean Kospi indices followed with 1.8% in gains.
The Chinese markets continued their uptrend momentum, gaining support from the ongoing fiscal stimulus from the local government, the cheap liquidity from the central bank and the resilience of the local economy from the virus outbreaks.
US futures start the week with 2% in profits after a long holiday weekend, following the bullish momentum in Asian markets despite the record spikes of COVID-19 cases in Florida and Texas on Saturday, raising concerns about the recovery of the US economy from the pandemic.
The Dow Jones and S&P 500 indices finished last week with 3.3% and 4% in gains respectively, while Nasdaq Composite advanced almost 5%, hitting fresh record highs once again.
Crude oil prices rose 1.5% this morning following the risk sentiment in the equity markets. WTI crude trades near $41 per barrel, while Brent rose at $43.50, on improved fuel demand from Asian and drawdowns in US oil inventories.
Gold prices edged lower on Monday morning in response to the risk-on mood and the stock market rally.
However, gold holds recent gains near the $1.775/oz level, after the World Health Organization reported a new record in daily virus cases over the weekend, while the yellow metal receives bids amid the ongoing low interest rates and the massive fiscal and monetary policies from the global central banks.
The US dollar and Japanese Yen fell across the board this morning as investors retreated from safe havens into riskier currencies such as the Euro and Australian dollar. The EUR/USD pair rose to 1.128 while AUD/USD is testing the key resistance level of 0.70.
The DXY-US dollar’s index against major currencies dropped below the 97 key support level, while it also lost ground against commodities currencies such as the Norwegian crone, Canadian dollar and Mexican peso.
Economic Calendar for July 06, 2020 (GMT+ 3:00):