Equities stay buoyed ahead of North American trading

Author: Justin Low | Category: News

Can European and US investors keep the torch alight in the latter half today?

China led the optimistic charge in Asian trading, where we saw both the Shanghai Composite and CSI 300 indices finish with over 5% gains on the day.

In turn, that is keeping risk trades more buoyed so far in European morning trade with indices in the region holding near 2% gains while US futures are up by over 1%.

But with China out of the way now, the key question is can European and US investors keep the optimism flowing in trading for the remainder of the day?

So far, there aren't any extensions to the risk rally but it isn't faltering either.

In the currencies market, the dollar and yen are continuing to keep weaker but losses aren't pushing to new extremes just yet.

EUR/USD is keeping higher and continuing to flirt with the 1.1300 handle, while AUD/USD is seeing gains limited by the swing region around 0.6975-77 for now.

Meanwhile, cable is still seeing some indecision around the 1.2500 handle with USD/CAD also keeping flatter for now amid a tighter trading range on the day.

Looking ahead, US ISM non-manufacturing data for June will be one to watch but also coronavirus headlines once again.

On the latter, it is Monday so the 'weekend effect' may kick in and we may see milder virus figures coming out from the US today.

That said, recent developments have been tricky to navigate with the case counts and hospitalisations still rising in Florida and Texas respectively.

Not to mention that WHO noted a record rise in global cases - exceeding 200,000 - on Saturday too. That isn't a comforting takeaway when we are supposed to be 'moving on' from the whole virus crisis and pandemic in general.

Back to markets today, the S&P 500 and its daily resistance region around 3,153 to 3,155 will be a key spot to watch:

E-minis 06-07
Futures are pointing towards a push above that but let's see if investors can hold on to the optimism to hint at stronger conviction for a technical move.
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