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The US dollar stabilized on Friday, with the USDX trading marginally lower. In emerging markets a mixed picture emerged by Monday morning, with the USD/TRY pair trading only marginally below the previous all-time high of 7.50, while many other emerging market currencies like the South African rand (ZAR) or the Mexican peso (MXN) continued to recover.Precious metals like gold and silver continued trading side-ways, while the slow but continues upwards move in platinum prices continued.Stock markets were overall in the green at the start of the European trading session on Monday with analysts hoping for positive developments in potential COVID-19 vaccines after AstraZeneca announced that it would resume its Phase III vaccine trials.Relatively few fundamental data releases are scheduled for Monday. One of the key releases could be the EU industrial production statistic for July. Analysts hope that new data will confirm that the production levels are closing in further on what was seen last year from -12.3 per cent in the previous month to a single-digit percentage in July.Then in the Asian-Pacific trading session industrial production and retail sales data from China can be expected, as well as the Housing Price Index for the second quarter from Australia.
The pound sterling had its worst week against the dollar and many other currencies since the tumultuous days of March, when the pandemic was one of the main factors moving the markets.This time the uncertainty about the relationship between the UK and the EU could be one of the key drivers for the recent movements. As the UK government seems to be intent on passing a new law that would alter the previous agreement with the EU on the market status of Northern Ireland, the EU is also increasing pressure with threats of consequences in the trade talks if the deal in place is altered.Fundamental data from the UK was relatively positive on Friday with industrial production recovering more than expected, while the trade balance deficit widened at the same time from GBP 5.1 billion to GBP 8.6 billion.
While the market sentiment was quite mixed on Friday, car manufacturers Daimler (+0.08%) and BMW (+0.60%) managed yet again to close in the green. This marked for both car manufacturers’ stocks the sixth day in a row with higher valuations.Also on a weekly basis the stock market performance is quite positive for the German market with the DAX up by almost three per cent on a weekly basis, whereas indices in the US and even in some other European countries like Spain closed lower on a weekly basis.Important fundamentals can be expected on Tuesday when the German ZEW survey on current conditions and business expectations in September will be released. The same data CPI data from France and Italy can be expected.
Oil prices closed for the second week in a row deep in the red on Friday, despite some moderately positive momentum recorded towards the end of the trading session.The US Baker Hughes Oil Rig Count remained yet again almost unchanged at just 180 oil rigs reported in operation. This is less than a quarter of the activity in the oil market one year ago.On Tuesday weekly crude oil stockpile statistics will be published by the American Petroleum Institute (API), followed by data from the Energy Information Administration (EIA) on Wednesday.
While the sentiment in the market was quite mixed on Friday with indices including the US500 and US Tech 100 closing lower, the Volatility index VIX at the same time curiously also declined.Following the announcement that Nvidia will take over the processor designer ARM, Nvidia stocks traded with a clear upside by Monday morning on European OTC markets. Apple stocks were also looking towards the upside as investors and fans are eagerly looking forward to see, which products Apple will announce at its even scheduled for Tuesday.One of the worst performers in the market was Chewy (-10.20%) the e-commerce pet food company. With the steep drop in terms of valuation, the company’s stock price is now back to the same level where it was a month ago. This drop came despite resilient results for the second quarter and a positive guidance from the management. Analysts were voicing concerns about the recent sale of around 79 thousand shares by the CEO of the company.This week again an increased number of large companies are due to release their earnings, including FedEx and Adobe on Tuesday.
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