Global stocks as strong corporate earnings defy analysts forecasts
Global stocks rose today as traders reacted to upbeat earnings from some of the biggest companies in the world. The biggest mover was Tesla, now the largest automaker by market capitalisation. The company made more than $6 billion in the second quarter and a profit of about $106 million. On the other hand, Daimler, the maker of Mercedes Benz lost almost $2 billion in the second quarter. The company, however, said that its performance was starting to improve. Other companies that released strong earnings were Microsoft, Twitter, and Unilever.
The price of crude oil wavered today as traders reacted to the rising tensions between the United States and China. The new tensions started yesterday when the US ordered the country to close its consulate in Houston. In a statement yesterday, China said that it would respond swiftly to the current provocation. Although no decision has been made, South China Morning Post, said that the country is considering closing a major embassy in Chengdu. This embassy represents the US in the south western side of China and is one of its most important locations.
The US dollar eased slightly as traders reacted to the ongoing debate regarding the stimulus package. According to CNBC, the Republican party is considering extending the enhanced unemployment benefits to December. But the party is planning to slash these benefits from the previous $600 per week to $100 per week. The goal is to incentivise more people to go back to work because many people are earning more money at home than being at work. Democrats have opposed that proposal. Instead, they have advocated for extending these benefits to next year. Meanwhile, data from the Bureau of Labour Statistics (BLS) showed that more than 1.4 million American filed for unemployment benefits.
The EUR/USD pair rose to an intraday high of 1.1583, which is a few pips below yesterday’s high of 1.1600. On the four-hour chart, the price is above the 50-day and 100-day exponential moving averages while the RSI has moved to the overbought level of 70. Also, the price is still in the third phase of the Elliot wave. This means that while the price is likely to continue rising, there is a possibility of it forming a corrective wave.
The XBR/USD pair declined slightly as traders reflected on the US-China skirmish and the rising US inventories. The pair is trading at 44.46, which is close to its multi-month highs. The price is above the short and medium-term moving averages while the signal line of the MACD is above the neutral line. Therefore, the pair is likely to continue rising as bulls attempt to move past $45.
The USD/CAD pair dropped to 1.3368, which is its lowest level in months. The price is along the lower side of the Bollinger Bands and below the short and longer-term EMAs. The price is also below the two lines of the Envelope indicator. Also, the price is below the descending white trend line. Therefore, the price is likely to continue falling as bears target the next resistance at 1.3350.