Stocks soar yet again on Tuesday

US benchmarks were 0.7% higher, while EU bourses opened 1% stronger on Tuesday morning.

Germany’s economic output fell by 9.7% in the second quarter of 2020, the latest economic figures showed Tuesday, an improvement on the original release showing a drop of 10.1%. So it was not as bad as expected, and stocks rallied, despite the German economy being in a deep recession. 

Traders will now wait for the German IFO surveys, which are due shortly, and should improve somewhat from July’s levels. However, considering the worsening outbreak in Germany, and many other EU countries, optimism might be short-lived. 

Later in the day, US new home sales are expected to post a slight increase month-on-month, while the US consumer confidence will probably slide a bit, due to renewed lockdowns in many parts of America.

In the FX market, nothing exciting is going on – the EURUSD pair remains near 1.18a, and cable still trades at around 1.31.

Metals are trying to recover from yesterday’s plunge, with gold seen at 1,930 USD and silver spotted near 26.50 USD. Oil was advancing slightly, and the WTI benchmark traded at 42.50 USD during the London session.