S&P 500 and Nasdaq indices once again updated historical highs

The US dollar index is rising today for the second day in a row. The main reason for this was good US economic statistics. In particular, the ISM Manufacturing PMI rose to 56 points in August. This is more than expected (54.5) and is the highest since November 2018. Last week, the US published positive data on consumer sentiment and spending. EUR/USD reached the psychological level of 1.2 yesterday, but could not overcome it. The euro began to correct downward against the US dollar after that. Unexpectedly weak economic data in Germany added some negative. Yesterday the Markit Germany Manufacturing PMI Final for August was revised downward to 52.2 from 53 points. It became known today that German retail sales in July fell by 0.9% in monthly terms, while their growth of 0.5% was expected. No other significant macroeconomic data in the Eurozone are expected today. In addition to weak statistics in Germany, today’s statement by the ECB chief economist Philip Lane had a negative impact on the euro rate. On behalf of his department, he expressed concern about the strengthening of the single currency. Recall that earlier, over the past 3 months, the euro strengthened by more than 10% against the US dollar.

On Tuesday, quotes continued to rise on the American stock market. S&P 500 and Nasdaq once again updated historical highs. In August, the S&P 500 gained almost 17%, the highest monthly record in 30 years. The S&P 500 is now being traded 4% above its pre-Covid-19 maximum, while the Nasdaq advanced by 21.7%. The Dow is still below its maximum by 3%. Yesterday’s rise was boosted by good US macroeconomic data, corporate news and expectations for the resumption of talks on bailouts for the US economy hit by the Covid-19. Apple stocks increased by 4% after reporting that the company has ordered spare parts from suppliers for 75 million 5G iPhones by the end of this year and expects sales to rise. The US President’s Chief of Staff Mark Meadows and Treasury Secretary Steven Mnuchin announced that the Republican Party will present their version of the financial aid package for the US economy next week. Today, the independent ADP agency will publish important data on the US labor market for August. As a reminder, the official Non Farm Payrolls report for August will be released this Friday.

World oil prices have been in a neutral trend for 2 months now. For Brent, it is $40-46.5 per barrel. According to the independent American Petroleum Institute, US oil reserves fell by 6.4 million barrels over the week to 501.2 million barrels. Due to hurricane Laura, oil production in the Gulf of Mexico last week decreased by 525 thousand barrels per day. Official information on changes in oil stocks will be released tonight. OPEC announced an increase in global oil demand in August by 1 million barrels per day. All this can be a positive factor for the oil quotes.

Precious metals prices declined today on the back of the US dollar strengthening: this is how investors reacted to the good US macroeconomic data. The growth of manufacturing PMI in China (Caixin) and Japan added some positive. Yesterday, the price of gold was approaching the psychological level of $ 2000 per ounce, but could not overcome it and corrected downward. Even so,  gold is 30% more expensive now than it was at the beginning of this year.