- Global equities traded higher throughout the Asia-Pacific session
- Euro-zone PMI shows good numbers
The Reserve Bank of Australia decided to hold the official cash rate and three-year yield target at 0.25 Percent; meanwhile, the global equity markets kept climbing higher, and ASX 200 went above 6,050.
The US dollar attempted to regain lost ground against other currencies while gold and silver prices traded steady below their respective monthly highs.
S&P 500 futures are posting the highest level post-crisis, and the yield on US 10-year Treasuries is near 0.55 Percent.
Without many other events on the economic calendar today, all eyes will be on Canadian manufacturing PMI and US factory orders.
Euro Trades Strong after Eurozone Manufacturing PMI
The IHS Markit Euro-area manufacturing PMI for July showed expansionary reading for the first time in the last year-and-a-half. Only Greece and the Netherlands have registered PMI readings below 50.
The report said that the output and demand continued to recover as the easing of restrictions progressed; also, it said, production was growing at the fastest rate over two years, helped by the surge in demand.
But, it also cautioned that the fall in employment is sharp, the report said: “marked the fifteenth successive month that employment has fallen, with the degree of job shedding again considerable and historically sharp.”
IHS Markit Chief Business Economist Chris Williamson said that job losses are higher than any time since 2009 and it, along with the ongoing struggle against the virus, would restrain the recovery.
Traders will be wary of being very bullish in this scenario, and measures like lockdown can affect the current bullishness, bringing back the risk-off sentiments.
If the upcoming June retail sales data shows a better-than-expected increase in consumer spending, Euro will find further support in its bullishness along with the European equities.
