Asian stocks are trading mostly higher on Tuesday as the optimism about a coronavirus treatment spreads to stock markets around the globe.
Yesterday, Wall Street finished higher yet again, while S&P 500 and Nasdaq hit record highs. The Federal Drug Administration approved the use of blood plasma from recovered coronavirus patients as a treatment option. The FDA is also considering proceeding with fast-tracking approval for the coronavirus vaccine developed by Oxford University and AstraZeneca.
Positive comments from trade officials on a phase one trade deal also help sentiment. Robert Lighthizer and Vice Premier Liu He, after a telephone conversation, said that the deal is coming along, and we may see further improvements.
In the economic calendar today, the U.S. housing data and the U.S. Consumer Confidence is on deck. Earlier today, German Q2 GDP was revised to -11.3%, better than expectations of -11.7%.
Investors’ attention this week will be on the speech by Jerome Powell at the Jackson Hall symposium. Analysts would look for a change in the way the Fed targets inflation.
In the overnight session, Japan’s Nikkei 225 ended 1.35% higher at 23,296. The Singapore Straits Times index was 1.09% higher at 2,566. However, the Shanghai Composite index pared gains and was 0.45% lower at 3,370, the same story for Hang Seng, which also turned lower giving up 0.14% at 25,516.
European Stocks on Positive Foot
European major indices opened 1% higher today, following Asian markets and Wall Street. European traders are more cautious as the number of new coronavirus infections continues to rise in many countries.
Gold Price Consolidates
Gold continues the consolidation after the recent correction, as of writing the gold price is 0.22% higher at 1,933 while silver price is 0.13% lower at 26.51.
Brent Crude Prices Mixed
Crude oil price hovers close to five-month highs as the risk-on sentiment improves the outlook for the demand of the black gold. Brent crude oil is 0.41% higher at $45.19, while the WTI oil futures are 0.03% lower at $42.61.