The healthcare sector companies delivered strong second-quarter earnings last week. Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT) posted second-quarter results on Thursday that surpassed the consensus forecast on Wall Street. Abbott shares have increased 11% since the beginning of the year while JNJ shares have declined 2.4% this year so far. This week the main health care earnings to watch Biogen, Inc. (NASDAQ: BIIB). The company will report second-quarter 2020 results on Jul 22, before market open.
European stocks trading higher on Tuesday after EU leaders reached an agreement on a EUR 750 billion common recovery fund after almost five days of intense negotiations. On Monday, Wall Street ended higher boosted by early positive trial results from US drugmaker Pfizer and Oxford-AstraZeneca, the Nasdaq surged 2.51% and the S&P 500 increased by 0.85%.
Crude oil price trading near the session high supported by positive news regarding the COVID-19 vaccine. The OPEC+ virtual technical meeting was held last week and resulted in a decision to move forward with the planned easing of the current supply cuts in August.
The British Pound surged to a fresh monthly high of 1.2715 on Tuesday supported by the weaker dollar and positive comments from the BOE’s Chief Economist Andy Haldane. He said that the UK economy hit the floor in April suggested further recoveries.
Gold price trading above the 9-year high of $1820. The yellow metal price climbed higher due to rising Coronavirus infections globally and by a weaker dollar.
On Tuesday, the European Union leaders reached an agreement on a EUR 750 billion recovery fund after five days of negotiations. French President Macron said the deal was “truly historic”.
On the data front, UK Public Sector Net Borrowing rose by over £34 billion in June, more than expected. During the Asian session, Reserve Bank of Australia released July policy meeting minutes. The minutes showed that there was no need to adjust the package of monetary policy measures.
On the earnings calendar, The Tech giant IBM (NYSE: IBM) reported better than expected Q2 earnings on Monday. While the company revenue was down 5.4% compared to the same quarter last year. $IBM stock climbed 6% in after-hours trading.
The important earnings to watch today: Coca-Cola Co (NYSE: KO) and Snap Inc (NYSE: SNAP)
The number of people infected with the coronavirus across the world rose surpassed 14.7 million, of which at least 609 thousand people have died, according to Johns Hopkins. The US accounted for the world's highest number of infections at 3.83 million. In India, there have been 1,155,338 confirmed cases and 28,082 deaths, with 724,578 people recovered from the virus. On Monday, Another Covid vaccine from Oxford University and AstraZeneca also showed a positive immune response in an early trial.
XAU/USD: The yellow metal trading above $1820 after breaking the previous resistance of $1818 during the previous session.
The important levels to watch for today: Support- 1818 and 1812 Resistance- 1826 and 1835.
EUR/USD: This currency pair trading below 1.1440 during the European session after hitting the fresh 4- month high of 1.1468.
The important levels to watch for today: Support- 1.1420 and 1.1370 Resistance- 1.1495 and 1.1530.
Quote of the day: It isn’t as important to buy as cheap as possible as it is to buy at the right time – Jesse Livermore.
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