The Nasdaq Composite is due for a V-turn shaped recovery, bouncing about 45% off its March 23rd low. The heavy-tech index is sitting just below its record high, set at the end of February, before the pandemic selloff began. That rally has been led largely by mega-cap tech stocks such as Amazon, Netflix, Apple, Facebook, Google-parent’s Alphabet and Microsoft.
Global cases: More than 6.27 million
Global deaths: At least 375,656
U.S. cases: More than 1.81 million
U.S. deaths: At least 105,147
US stock markets rose on Tuesday amid hopes of reopening of global economic activity after the removal of pandemic-related lockdowns.
However, investor remain concerned that the U.S. President Donald Trump will deploy the military if states and cities failed to show signs that they controlled the recent demonstrations sparked by the killing of George Floyd.
Asian markets finished the day higher on Tuesday, extending yesterday’s gains on the de-escalation of trade tensions between US and China over Hong Kong’s status. Nikkei and Hang Seng indices led the gains with 1.2%, followed by Kospi and CSI 300.
WTI and Brent crude oil prices continue their upward momentum, climbing to 3-month highs of $36.20 and $39.30 per barrel, respectively.
Oil prices climbed ahead of the OPEC+ meeting on Thursday, to agree whether extending their production cuts of 9.7 million barrels per day, the cut quota for May-June period, for another 3 or 6 months.
Trade-sensitive Australian and New Zealand dollars have been the best performing currencies since April. Both being risky currencies are gaining support from the signs of the Chinese economic recovery, the de-escalation of trade tensions and the rally in the prices of iron ore and other commodities. The AUD/USD pair reached the 0.68 level, recovering all the pandemic-related losses, after it bottomed at 0.55 in mid-March.
The DXY-dollar index fell below the 97.70 level, as the improved risk sentiment over the opening of the global economies, has sent investors away from traditional safety currencies. Furthermore, the US dollar fell at its weakest level since mid-March amid the massive violent protests in major US cities following the death of George Floyd in police custody.
Economic Calendar for June 02, 2020 (GMT+ 3:00):