Market Brief: Asian markets jump as S&P 500 inches close to record high

ASX 200
ASX 200

Asian markets are on the rise, mirroring a strong close in Wall Street as the S&P 500 index closed near its record high. Investors anticipate that a new stimulus package from the Trump administration will offset the impact that the Coronavirus is having on the state of the U.S. economy. Sentiment was further boosted after reports that Russia has approved a Coronavirus vaccine.

The Nikkei 225 finished 1.78% higher – at 23,249 – approaching a six-month high, while the Shanghai Composite index is 0.04% higher, at 3,320. The Singapore Straits Times index is 1.45% higher at 2,600, while the ASX 200 index in Australia ended 0.67% lower at 6,091.

Australia employment data beats Expectations

Freshly released July employment data for Australia showed that employment jumped by 114,700 last month, beating earlier forecasts of an increase of 30k. Full-time jobs rose 43,500 and part-time positions increased by 71,200. As a result, the unemployment rate increased to 7.5%, above 7.4% in June but below estimates for an anticipated rise of up to 7.8%. The participation rate increase to 64.7% in July, from 64.1. The AUDUSD is trading higher after the news.

Crude oil price consolidate

Crude oil prices trade slightly lower as investors are taking some profits off the table following the recent rally. Better economic data has improved investors sentiment, and the demand for crude oil rise as most of the countries ease the Coronavirus restrictions.

European markets on negative foot

European stocks started slightly lower ahead of initial jobless claims in the U.S., which will be released later today. The risk appetite has returned in equities after positive manufacturing data in Europe. Earlier today, the Germany Consumer Price Index came in at -0.5%, which is in line with forecasts for July, while the yearly CPI also matched expectations at -0.1%. The Harmonized Index of Consumer Prices reported at 0%. Dax index is 0.13% lower at 13,042. The CAC 40 in Paris started 0.24% lower at 5,060, while the FTSE in London is 1.06% lower at 6,213. 

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