Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Europe Points Higher Ahead Of Busy Data Day, Gold Shines

By City Index (Fiona Cincotta)Market OverviewAug 05, 2020 03:04AM ET
www.investing.com/analysis/europe-points-higher-ahead-of-busy-data-day-gold-shines-200533036
Europe Points Higher Ahead Of Busy Data Day, Gold Shines
By City Index (Fiona Cincotta)   |  Aug 05, 2020 03:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

After an upbeat close on Wall Street, European markets are pointing to a stronger start. A combination of slowing new coronavirus cases in the US, vaccine optimism from Novavax (NASDAQ:NVAX) and a meeting between Chinese and US trade negotiators to assess progress in the Phase 1 trade deal are all helping to boost the mood ahead of a busy day of data. 

UK service sector PMI 

The closely watched UK service sector Purchasing Managers Index will be in focus in the European session. Analysts are expecting the PMI to confirm 56.6, whereby the level 50 separates expansion from contraction, as the sector continues to rebound from its April nadir. The service sector is the sector that was most affected by the lockdown measures and is also the dominant sector in the UK economy. A strong reading could help lift sentiment and push GBP/USD back above $1.31 as the UK economic recovery gains momentum. However, this is set to change as the government starts to withdraw support from the job retention scheme over the coming months. 

Other data releases include Eurozone PMI and retail sales

ADP Payrolls, ISM non-manufacturing in focus 

In the US session, the ADP payroll and ISM non-manufacturing could guide investors with what to expect on Friday’s non-farm payroll. Both the ADP payroll and the non-manufacturing PMI are expected to show a slowdown from last month’s solid numbers. Too much of a slow down could unnerve investors amid fears that the resurgence in COVID cases is hampering the economic recovery. 

Gold shines 

Goldis on fire. The precious metal’s scorching rally has continued with prices pushing through the key psychological level $2000 to a record high of $2030 per ounce, as bond yields hit new lows and the US Dollar experiences another steep sell-off. 

With Congress promising to work round the clock to reach a deal on a new rescue package by the end of the week and comments from the President of the Federal Reserve Bank of San Francisco that the US economy will need more support than initially thought– the stimulus taps are firmly switched on with no signs of them being turned off anytime soon. 

With the global economic recovery expected to be more drawn out than initially expected and the US Dollar losing value, investors are increasingly turning to non-yielding gold to store wealth. Given that high fiscal spending and extremely accommodative monetary policy are expected to be in place for years, there is a good chance that gold has higher to go. 

Whilst the commodity Gold is an obvious way to tap into the gold rally, Gold miners have also been experiencing a boom of late. 

FTSE Chart

FTSE Chart
FTSE Chart

Europe Points Higher Ahead Of Busy Data Day, Gold Shines
 

Related Articles

Europe Points Higher Ahead Of Busy Data Day, Gold Shines

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Hamid Shabestani
Hamid Shabestani Aug 06, 2020 1:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
very nice analysis. Thanks🌼🌼🌼
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email