Global stocks mixed on coronavirus and earnings concerns

Global stocks were mixed today as traders reflected on the rising number of coronavirus cases in the United States and corporate earnings. In Europe, the FTSE 100 declined after Rolls Royce released weak quarterly earnings. The company expects to make losses in the next six years. In Germany, the DAX index rose by more than 170 points while in France, the CAC 40 index rose by 10 points. Meanwhile, in the United States, futures tied to the Dow Jones fell by 35 points while the Nasdaq rose by 50 points. In the US, data showed that coronavirus cases rose by more than 62,000 yesterday as deaths passed 130,000. Another data from the US showed that initial jobless claims dropped from last week’s 1.42 million to 1.3 million.

The euro pared earlier gains as the market reacted to the weak trade numbers from Germany. The country’s statistics office said that exports increased by 9% in May while imports rose by 3.5%. These numbers were better than April’s decline of 24% and 16.6% respectively. Still, analysts polled by Reuters were expecting better numbers. They were waiting for exports to rise by 13.8% and imports to rise by 12%. As a result, the country’s trade surplus rose from the previous €3.4 billion to €7.6 billion. Other data from Germany showed that consumer sentiment rose from the previous 47.40 to 49.23.

The Japanese yen strengthened against the USD after the country released better-than-expected machinery order numbers. According to the statistics office, core machinery orders rose by 1.7% in May after falling by 12.0% in the previous month. The orders fell by 16.3% from the same month in 2019, which is understandable because of the lockdowns. Other data showed that machine tool orders declined by 32% after falling by 52% in the previous month. The pair will react to the PPI numbers that will be released tomorrow morning.

EUR/USD

The EUR/USD pair is trading at 1.1337, which is below the intraday high of 1.1373. On the four-hour chart, the price is between the middle and upper line of the Bollinger Bands. The signal and main line of the MACD are rising while the price is slightly below the important resistance at 1.1348. The pair also seems to be forming a cup and handle pattern. Therefore, the pair may continue falling in the short term as bears attempt to test the next support at 1.1262 before resuming the upward trend.

GBP/USD

The GBP/USD rally continued today and the price is trading at 1.2650, which is the highest it has been since June 16. The price is above the 50-day and 100-day exponential moving averages and slightly above the dots of the Parabolic SAR. The RSI has moved above the overbought level of 70. Therefore, the pair is likely to continue rising as bulls target the next resistance at 1.2700.

XBR/USD

The XBR/USD pair rose to an intraday high of 43.42, which is the highest it has been since June 23. The price is slightly above the 50-day and 100-day exponential moving averages. The price is also slightly above the ascending white trend line. The RSI has also started to approach the overbought level of 70. Therefore, the price is likely to continue rising as bulls target the next resistance at 45.