The Nasdaq Composite rose 1.4% a day after the technology-heavy index closed at a record boosted by technology stocks. Shares of Zoom Video Communications (NASDAQ: ZM) climbed more than 40% on Tuesday after the company reported strong Q2 financial results. Apple stock climbed 3.6% after a report the company had requested suppliers to make at least 75 million 5G iPhones for later this year.
On Tuesday, Wall Street ended higher boosted after the manufacturing activity in the US registered the sharpest increase in almost two years during August. Meantime, US Treasury Secretary Steven Mnuchin told a congressional panel he was willing to provide more money for state and local governments.
Crude Oil prices trading higher supported by positive API inventory data, the weekly crude oil inventories fell from previous -4.524M to -6.36M on August 28 supporting the oil market.
In the currency market, the EUR/USD fell after the Eurozone consumer price index dropped 0.2% year-on-year versus July's 0.4% rise and upbeat manufacturing data from the US. Meanwhile, the New Zealand dollar climbed to the new session high on Wednesday following an announcement by RBNZ Governor Adrian Orr that the central bank is actively preparing a package of additional monetary policy tools to use if needed.
Gold price edged lower after better-than-expected U.S. manufacturing data lifted the dollar back up from its lowest level in about two years.
On the data front, the Australian Bureau of Statistics released the Q2 GDP, the gross domestic product economy contracted 7% on quarter in the second quarter of 2020. On the other hand, Germany retail sales dropped 0.9% in July 2020 while the retail sales rose 4.2% YOY in July.
On Tuesday, ISM Manufacturing PMI in the USA in August rose from 54.2 to 56 points, which significantly exceeded the projected 54.5 points.
Moving ahead today, the important events to watch:
US ADP employment report – 12.15 GMT
US crude oil inventories – 14.30 GMT
The U.S. has 6 million confirmed cases and over 183,000 deaths. Globally, there are 25 million cases and more than 851,000 people have died, according to Johns Hopkins University data. Meanwhile, UK-based pharmaceutical company AstraZeneca begins the final phase of the coronavirus (COVID-19) vaccine trials.
XAU/USD: The gold price trading below $1960 during the European session, the next crucial support to watch at $1940.
The important levels to watch for today: Support- 1950 and 1940 Resistance- 1975 and 1995.
EUR/USD: The currency pair extends slide to below 1.1870 after mixed economic data, during the previous session the pair dropped almost 100 pips from the top after the dollar edged higher from its lowest level.
The important levels to watch for today: Support- 1.1860 and 1.1830 Resistance- 1.1920 and 1.1960.
Quote of the day: There are a million ways to make money in the markets. The irony is that they are all very difficult to find- Jack D. Schwager.
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