Stocks surge on Tuesday, again

By Peter Bukov|

Published: August 11 2020, 08:53 GMT+0

Stocks surge on Tuesday, again


Nothing new here – move along. Equities were bid again, and US indices were trading half a percent stronger in the Frankurt session on Tuesday as there was no obvious catalyst, but the bullish momentum was clearly enough. 

Investors are awaiting a meeting between the top US and Chinese trade officials on Saturday to review the first six months of the Phase 1 trade deal.

However, China is lagging far behind on energy and farm goods purchases from the United States, mainly due to the ongoing pandemic and deteriorating diplomatic relations. But it looks like investors don’t care anymore, and the only way is up for stocks.

Later in the day, German ZEW surveys are expected to improve somewhat, and traders will also focus on the US PPI indices, which are forecast to rise on a monthly basis. 

In the FX, the greenback was trying to strengthen against the EUR, and the EURUSD pair might have found its top already as there seems to be a nice double top pattern. This pattern has the potential to send the euro back to 1.15.