Today, Asian stocks snapped two days of losses on hopes of a coronavirus treatment.
The FDA approved the use of blood plasma from recovered coronavirus patients as a treatment. The risk-on sentiment drove Nasdaq and S&P 500 to record closing highs on Friday as investors continue to bid the technology sector. Investors also ignored last week’s soft PMI services data from Europe and the USA. The PMIs are pointing to a fragile economic recovery.
In Europe, the Brexit negotiations stalled for one more time as the previous week talks added nothing new. The EU blames the UK for the deadlock. EU’s negotiator, Michel Barnier, said a post-Brexit trade deal seems unlikely.
Investors will focus on Fed’s Chairman, Jerome Powell, at the online Jackson Hole symposium, later on in the week, where he is expected to talk about the inflation and monetary policy.
New Zealand Retail Sales Disappoint
New Zealand’s retail sales disappointed investors. Second-quarter retail rales plunged -14.6%. Meanwhile, the government extended Auckland’s lockdown until August 30, while the new coronavirus cases came up to nine on Monday.
Japan’s Nikkei 225 ended 0.28% higher at 2,985, despite the concerns over PM Abe’s health.
The ASX 200 index in Australia is 0.36% higher at 6,133. The Shanghai Composite index ended 0.19% higher at 3,387. The Singapore Straits Times index ended 0.51% higher at 2,541.
Gold Price Under pressure
Gold prices started the week on the wrong foot as the risk-on sentiment continues to pressure the safe-haven assets. Gold hit seven days low on Friday at $1,912 but managed to return above the $1,930 mark, while today as of writing is 0.16% lower at $1,936. Silver is also under pressure giving up 1.26% to reach $26.34.
Brent Crude Oil Price Stabilize Above $44
Crude oil price’s positive momentum is intact as the hopes for a fast economic recovery boost prices. OPEC+ continues to support crude oil as it continues to monitor the compliance of the oil production cuts. Brent crude oil is 0.32% higher at $44.42, while the WTI futures are 0.12% higher at $42.39.