Equities continue higher, dollar flat on Monday

It looks like the long-term trends will continue this week, meaning stocks should push higher while the USD is expected to move sideways.

Earlier in the day, China’s Caixin manufacturing PMI missed expectations of 51.0 and printed 50.0 in July. The official manufacturing and non-manufacturing PMIs, released on Saturday, were 50.4 and 53.3, both missing expectations as well.

The manufacturing sector in China seems to be deteriorating rapidly as the PMI is now close to the 50.0 threshold, which separates contraction and expansion in the sector. 

Despite the weak data, the Australian dollar was trading somewhat higher during the London session as the USD has been broadly weaker. However, volatility has been minimal so far on Monday. 

Elsewhere, US and EU indices were trading higher today, adding circa 0.5% as the last week’s volatility seems to be dissipating, and the long-term uptrend is expected to continue. 

The Nasdaq 100 index was back above 15,000 USD, and the SP500 index climbed above 4,400 USD again. The Dow was also above its important 35,000 USD threshold at the time of writing. 

In commodities, gold fell 0.3% to 1,808 USD, while silver remained flat on the day, trading near 25.50 USD.

Later in the day, the EU PMIs for July will be released, followed by the US manufacturing ISM, expected to improve slightly, from 60.6 to 60.8.

Source: https://www.axiory.com/market-news/equities-continue-higher-dollar-flat-on-monday