ZFX: Record-setting Nasdaq propped up the market sentiment
European stocks are generally opening higher on Tuesday, following the optimistic sentiment from the stock markets in Asian region. Last night, the three major Wall Street indexes all rose, which the Nasdaq made a new high, as investors reacted to the positive manufacturing data in the US and the jump of Microsoft and Apple.
The ISM manufacturing index in July was 54.2, which is better than expected, boosting the market sentiment overnight. The dollar index tried to approach 94 mark on Monday.
ZFX analyst Jacob Leung said that, the market is doubtful whether the recovery of the US economy is on track or not. The data brought some hopes to investors, and support the recent weak greenback. On the other hand, it may be a high time for short positions unwinding of the dollar.
However, the market is now focusing on coronavirus relief bill in the US which is still stuck in the Congress and the unemployment benefit remains the key point to make the deal. The latest news is that Democrats and Trump administration officials will have meetings to solve the current situation.
Without obvious progress, the dollar index dropped back to 93.3 level on Tuesday Asian session.
ZFX analyst Jacob Leung said that, the factors in the market were mixed. It should be noticed that the correlation between markets tends to be weaker recently, implying that markets are entering into the correction stage.