Global financial markets edged higher on Wednesday ahead of the Federal Reserve’s meeting later today. The Nasdaq Composite broke above 10.000 for the first time ever, gaining support from the ongoing rally in the prices of major technology companies.
Global cases: More than 7.17 million
Global deaths: At least 408,244
U.S. cases: More than 1.96 million
U.S. deaths: At least 111,375
US futures rose 0.5% this morning, regaining some of Tuesday’s losses, as investors await clarity on the state of the US economy and expectations for further stimulus from the Federal Reserve’s policy meeting.
The tech-heavy Nasdaq composite managed to break above the 10.000 level for the first time ever, lifted from massive profits from tech companies such as Amazon, Apple, Netflix, Google, Facebook, and others.
Asian markets closed slightly higher on Wednesday, with the Hang Seng and Kospi indices leading the gains with 0.3%, despite the lower than expected Chinese inflation data.
WTI and Brent crude oil prices fell 1% this morning at $38 and $40.50 per barrel respectively, on an unexpected rise in US stockpiles, renewing concerns about oversupply and falling fuel demand in the country.
The report from API showed that the U.S. crude inventories increased by 8.4 million barrels in the week to June 5th , while analysts expected a draw of 1.7 million barrels.
Energy investors expect the official government inventory report from the Energy Information Administration later today to confirm the rise in the US stockpiles.
The DXY-US dollar’s index dropped to 4-month lows this morning at the 96.25 level, extending its downtrend momentum ahead of the Fed’s economic outlook and decision on stimulus policies.
The EUR/USD pair rose at 1.1350 while the USD/JPY dropped to 107.35 on the greenback’s weakness. The GBP/USD climbed above 1.2750, to its highest level since early March, while trade-sensitive Australian and New Zealand dollars just below their multi-month highs.
Economic Calendar for June 10, 2020 (GMT+ 3:00):
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