On Tuesday, the data showed Germany's economy shrank by a record 9.7% in the second quarter, slightly less than an initial estimate of a 10.1% contraction. Meantime, the German IFO Business Climate Index rose to 92.6 in August from the 90.5 previous and current Economic Assessment reported at 87.9 points, compared to last month's 84.5 and 87.0 anticipated.
Asian stocks traded higher on Tuesday following the record highs overnight on Wall Street and amid signs of progress in U.S.-China talks. On Monday, Wall Street ended higher after the US Food and Drug Administration (FDA) provided emergency authorization to the use of blood plasma of recovered patients to treat COVID-19 patients. The S&P 500 rose 1%, after closing at a new high Friday. It was the third record in the last five trading sessions.
Crude Oil prices trading steady ahead of the API data today. During the last week, the inventory data came better-than-expected with a decline of 4.26M barrels compared to a decline of 2M forecasted.
In the currency market, the EUR/USD recovered from the previous session lows after strong German IFO data and better-than-expected GDP numbers.
Gold price trading lower on Tuesday amid the increased market risk sentiment over the optimism related to a COVID-19 treatment that lifted Wall Street stocks to a record high.
On the US-China front, According to China's Ministry of Commerce, both sides reaffirmed their commitment to the phase-one trade deal during the biannual review of the accord. The media reports said that the US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had a call with Chinese Vice Premier Liu He Monday evening stateside to “discuss the implementation of the historic Phase One Agreement between the United States and China.”
AstraZeneca shares rose 2.1% after the Financial Times reported the US Trump administration was considering fast-tracking an experimental COVID-19 vaccine being developed by the company. AstraZeneca started early-stage trials for an antibody-based treatment for the prevention and treatment of COVID-19.
The number of people infected with the coronavirus across the world hit 23.6 million, of which at least 813 thousand people have died and 15.3 million have recovered, according to data released by the Johns Hopkins University. "Over 1.7 million new Covid-19 cases and 39,000 new deaths were reported to WHO for the week ending 23 August, a 4% decrease in the number of cases and (a 12% decrease) in the number of deaths compared to the previous week," the WHO said.
XAU/USD: The gold price trading near the $1920 support zone, any break below this level the next downside to watching $1900.
The important levels to watch for today: Support- 1912 and 1900 Resistance- 1940 and 1965.
EUR/USD: The currency pair trading steady above 1.1830 during the European session, supported by 1.1780.
The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1850 and 1.1890.
Quote of the day: Everyone has the brainpower to make money in stocks. Not everyone has the stomach – Peter Lynch.
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