Hydrogen truck maker Nikola Corp. surged 104% in its third day of trading on the NASDAQ after a reverse merger with VectoIQ Acquisition Corp. The stock bounded higher on Monday after Trevor Milton, the founder of Nikola Corporation tweeted that reservations for Nikola’s zero-emission truck, dubbed the Badger, would kick off later this month. Nikola Motor now is valued at $1.6 billion based on the Monday closing price of $73.27, which put the company’s market cap at $26 billion. The company was founded in 2016 and the vehicle maker has secured truck orders for a combined 14,000 units so far.
Global stocks trading mixed on Tuesday amid concerns over geopolitical tensions including renewed trade tensions between the US and China, North Korea issued a warning to cut communication ties with South Korea after finding the movement of unacceptable material through the border and weak German data.
Crude oil prices drifted lower on Tuesday after Saudi Arabia said on Monday that those extra reductions will last just one month as planned, wouldn’t continue with additional, deeper curbs after June.
EUR/USD slightly recovered from early losses, at the time of writing the currency pair trading above 1.1260. During the European session, the pair dropped to a session low of 1.1240 after weaker-than-expected German trade data showed both exports and imports collapsed in April due to the coronavirus pandemic. Meantime, Japanese yen trading strong against other benchmark currencies after the Japanese government said, Japan’s Foreign Minister Motegi and UK Trade Minister Truss agreed to work on a swift agreement on an economic partnership to secure business continuity for both nations.
Gold price surged the second consecutive session on Tuesday. The yellow metal price boosted by rise in geopolitical tensions and the investors anticipates the U.S. Federal Reserve will maintain its dovish stance at its policy-setting meeting this week.
The global economy is expected to shrink by about 5.2% in 2020 as a result of the coronavirus pandemic, making it one of the four most severe downturns in 150 years, the World Bank said Monday.
The Eurozone economy shrank by 3.6 per cent on quarter in the first three months of 2020, compared with preliminary estimates of a 3.8 per cent contraction. While monthly German exports shrunk by a more-than-forecast 24%, imports to the nation slumped by 16.5%, the Federal Statistical Office said Tuesday.
Coronavirus cases have crossed 7.1-million mark worldwide with 408,240 deaths. The United States continues to remain the worst-hit country with positive cases toll at 2,026,493 including 113,055 deaths. The total number of coronavirus cases in India has jumped to 267,046, while 7,473 people have died from the disease so far. Russia reported 8,595 new cases of the novel coronavirus on Tuesday, bringing the number of infections nationwide to 485,253.
EUR/USD: The pair trading above 1.1270 on Tuesday. Any breaks below 1.1230/40 will open doors to 1.1190 support zone and on the upper-side the immediate resistance around 1.1320.
The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1285 and 1.1320.
AUD/USD: AUDUSD retreats from the resistance, after touching a 6- month high of 0.7040. The pair currently trading below 0.6950, any break below 0.6930 levels to pave the way for further weakness to 0.6900 and 0.6850.
The important levels to watch for today: Support- 0.6900 and 0.6850 Resistance- 0.6960 and 0.7000.
Quote of the day: One of the many funny things about the stock market is that every time one person buys, another sells, and both think they are astute-William Feather.
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