Global equities were broadly higher today, putting an end to consecutive sessions of sell-off this week. Inspiring data released in the U.S. yesterday enhanced investors’ appetite for risk assets while improved sentiment for iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) also provided support to equities.
U.S. inspires rally
Asian bourses gained throughout the session, giving relief to worries that stemmed from Brexit vote. European markets also traded higher, responding to improved service sector activity in the U.S. Trading in U.S. stock futures indicated at another positive opening today with S&P 500 INDEX (INDEXCBOE:SPX) Futures up by 0.02% to 2,094.50 and NASDAQ (INDEXNASDAQ:NDX) Futures inching higher by 0.13% to 4,445.25.
Oil prices edged higher today after gaining overnight. Traders are awaiting crude inventory data in the U.S. and widely project the stockpiles to decline at a faster pace during the last week. Analysts are expecting that the U.S. Energy Information Administration will report fall in oil inventories during the previous week by 6.7 million barrels.
China’s forex reserves increase sharply
After positive service sector activity report, all eyes are turned on nonfarm payroll report that is set to release on Friday. Meanwhile, ADP payrolls report due later today will also give an indication of economic trajectory. According to estimates, weekly jobless claims may rise by 2,000 to 270,000. Any downside in employment scenario can further delay rate hike by the Federal Reserve, which has already signaled that rate hike will be put on hold till Brexit consequences become clear.
An official report in China has shown that foreign exchange reserves in the region have increased dramatically in June. Country’s forex reserves jumped by $13.4 billion to $3.21 trillion, rejecting estimates of fall in reserves by analysts. In currencies, GBP/USD (GBPUSD) managed to rise above its record lows but Brexit pressure persists.