China's official manufacturing PMI released on Wednesday; the PMI rose to 51.5 in September from 51 the previous month. Meanwhile, the Caixin manufacturing PMI edged down from 53.1 last month to 53.0 in September.
Asian stocks trading mixed on Wednesday despite better-than-expected China's manufacturing data. On the other hand, European shares extend losses after mixed eurozone and German economic data.
Crude oil prices slipped lower amid mounting concerns over fuel demand recovery as the number of coronavirus infections continues to rise worldwide.
In the currency market, the British pound slides to near 1.2800 after the latest data showed the British economy contracted by 19.8% for the second quarter.
The Gold price trading slightly lower on Wednesday after the yellow metal hit a fresh weekly high of $1997 during the previous session.
On the data front, Japan industrial production rose 1.7% in August over the previous month, while retail sales increased 4.6% over the same period. On the other hand, German retail sales jumped by 3.1% on the month in real terms after an upwardly revised drop of 0.2% in July, data from the Federal Statistics Office showed.
On Tuesday, the Vice Chairman of the Federal Reserve, Richard Clarida, said that the Fed will not increase the interest rates until the labor market recovers completely. He also said that rates will not be raised until the inflation target of 2% has been met and the target has been surpassed for some time.
Moving ahead today, the important events to watch:
US – ADP employment report: GMT – 12.15
US – Gross Domestic Product: GMT – 12.30
US -Crude oil inventories: GMT – 14.30
The number of people infected with the coronavirus across the world crossed 33.6 million, of which at least 1 million people have died and 23.4 million have recovered, according to data released by the Johns Hopkins University. The UK reported 7,143 cases of coronavirus in the last 24 hours - the biggest rise since the pandemic began. It also recorded 71 coronavirus-related deaths, the highest daily leap since July 1.
EUR/USD: The currency pair slightly retreated from the highs, at the time of writing the pair hovers near the 1.1700 zones.
The important levels to watch for today: Support- 1.1690 and 1.1660 Resistance- 1.1740 and 1.1780.
GOLD: The yellow metal trades near $1880 ahead of US ADP employment and GDP data. Overall, the momentum remained bearish throughout the European session.
The important levels to watch for today: Support- 1875 and 1860 Resistance- 1896 and 1910.
Quote of the day: Wide diversification is only required when investors do not understand what they are doing – Warrant Buffet.
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