Dollar falls, equities rise after Chinese data

The greenback slid on Monday, while equity indices rose notably as sentiment improved over the weekend. US stock futures were up more than half a percent during the London session, with EU bourses also opening notably stronger. 

Data over the weekend showed an increase in profits at China’s industrial companies for the fourth consecutive month in August, suggesting that the economic recovery in the second-largest economy in the world was recovering.

However, many analysts and economists have doubted Chinese data, whether economic or COVID cases. Thus, optimism might be short-lived, especially when cases continue to rise sharply across Europe, with some upticks in cases seen in the US. 

Later in the day, the ECB President Christine Lagarde is due to deliver an introductory statement at the ECON committee of the European Parliament in Brussels. Her words might influence the EURUSD pair and possibly EU equities as well.

Metals failed to use today’s bounce in stocks and were sold-off again as silver plunged 1%, and gold was down 0.15%. 

Despite positive Chinese numbers, the WTI oil was also down, and the oil benchmark dipped back below the important 40 USD threshold. 

Source: https://www.axiory.com/market-news/dollar-falls-equities-rise-after-chinese-data