US stocks had a good start to the week, especially the technology sector. European and UK stocks are trading flat to slightly higher this morning as the focus shifts to latest Fed meeting today and tomorrow and Bank of England announcement later in the week.
- Eurozone’s industrial production rose by 4.1 percent from the previous month in July 2020, following a 9.5 percent jump in June and compared to market expectations of a 4 percent increase, as the bloc’s economy continued to recover from the pandemic shock. Output rose for capital goods (5.3 percent vs 14.7 percent), durable consumer goods (4.7 percent vs 21.2 percent), intermediate goods (4.2 percent vs 6.9 percent), non-durable consumer goods (3.9 percent vs 5.1 percent) and energy (1.1 percent vs 2.9 percent). On a yearly basis, industrial production contracted by 7.7 percent, compared to market consensus of an 8.2 percent decline.
- The University of Oxford and AstraZeneca Plc have restarted a U.K. trial of an experimental Covid-19 vaccine after it was halted over concerns about a participant who fell ill. The U.K. Medicines Health Regulatory Authority recommended that the study resume after an independent review of the safety data triggered a pause on Sept. 6, Oxford said in a statement. It declined to disclose details about the volunteers illness.
- Gold prices rose above $1,950 on Tuesday underpinned by a weaker dollar and hopes of a dovish monetary policy outlook from the Federal Reserve. Gold also found support on expectations of more fiscal stimulus in the United States after US Treasury Secretary Steven Mnuchin said there still could be a deal with Congress.
- Beijing said it has imposed restrictions on American diplomats in China to retaliate against Washington’s recent move to curb activities of Chinese diplomats in the U.S. On Friday, China’s Foreign Ministry said it recently sent a diplomatic note announcing “reciprocal restrictions” on the U.S. Embassy in Beijing and American consulates across the country, including the one in Hong Kong. The measures apply to senior diplomats and all other personnel at these U.S. missions, the ministry said, without giving details on the curbs imposed.
- On Monday: European stocks gave up early gains and ended mixed, as investors refrained from making significant moves post noon. After opening in the morning thanks to resumption of coronavirus vaccine trials by AstraZeneca came out, stocks pared gains and turned in a mixed performance as uncertainty about Brexit negotiations and surging new virus cases rendered the mood cautious. US stocks showed a significant move to the upside, regaining some ground after moving notably lower last week. The major averages all moved sharply higher, with the tech-heavy Nasdaq posting a standout gain. Apple (AAPL) has been a key driver of the markets in recent sessions and advanced by 3 percent after ending the previous session at its lowest closing level in a month.
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