Global stocks mixed as investors react to mixed corporate earnings

The euro rose against its major peers as traders reacted to Eurozone’s inflation data and the ongoing meeting on the EU recovery fund. According to Eurostat, the headline consumer inflation in the bloc rose to 0.3% in June from the previous 0.1%. The so-called core CPI, which excludes the volatile food and energy products, declined to 0.8% from the previous 0.9%. Eurostat attributed the increase to a 3.8% increase in Poland and a 3.4% increase in the Czech Republic. Still, inflation is still below this year’s high of 1.0%.

Meanwhile, investors are watching the ongoing meeting among EU leaders in Brussels. They are deliberating on the 750 billion euro recovery fund that was proposed by the European Commission in May. Several countries like Austria, Sweden, Netherlands, and Denmark, have opposed giving out the funds as grants. They have also opposed other issues in the deal. Still, traders are optimistic that the two sides will reach an agreement.

Global stocks were mixed today as traders reacted to the ongoing earnings season. In the United States, futures tied to the Dow Jones and Nasdaq rose by 0.30% and 1% respectively. Among the key movers in the premarket were Netflix and Blackrock. Yesterday, Netflix said that it added more than 10 million new subscribers in the second quarter. Its revenue and profits were higher than what analysts were expecting. Meanwhile, Blackrock’s profit rose by 21% as inflows surged to more than $7.32 trillion. However, investors are still concerned about the rising number of coronavirus cases in the US. Yesterday, the country confirmed more than 77k new cases.

The US dollar was under pressure as traders reacted to the latest building permits and housing starts numbers. Data from the Census Bureau showed that building permits rose to 1.24 million in June after rising by 1.21 million. Housing starts, on the other hand, rose to 1.18 million from the previous 0.9 million. These numbers, coupled with the previous retail sales numbers, show that the US economy is doing relatively well.

EUR/USD 

The EUR/USD pair rose to an intraday high of 1.1426 as traders waited for the EU leaders meeting. The price is above the short and medium-term moving averages on the four-hour chart. It is also slightly above the important resistance of 1.1422, which is the highest level since June 10. Therefore, while the pair is likely to continue rising, there is a likelihood of more volatility during the American session as the meeting concludes.

XAU/USD

The XAU/USD pair rebounded during the European session as investors continued to worry about the rising number of coronavirus cases in the US. The price is above the short and longer-term moving averages on the four-hour chart. It has also moved above the ascending trend line that is shown in white. The RSI, too, has started to move higher. Therefore, the price is likely to continue rising as bulls target the 7-year high of 1818.

EUR/GBP

The EUR/GBP pair spiked as traders waited for the outcome of the meeting in Brussels. It is trading at 0.9107, which is the highest it has been since July 14. On the four-hour chart, the price has moved above the short and longer-term EMAs and the Ichimoku cloud. The RSI has also moved slightly below the overbought level of 70. Therefore, the pair is likely to continue rising as bulls aim for the next resistance at 0.9145.