Yang FX & Stocks

DAX futures contract in Germany traded 0.2% higher, the FTSE 100 futures contract in the U.K. rose 0.1%, while CAC 40 futures in France climbed 0.1%.BMW (DE:BMWG) said it expected an operating profit for the full year.Commerzbank (DE:CBKG) posted a 21% decline in second-quarter profit.Ahold Delhaize NV (AS:AD), a major operator of supermarket chains in the United States and Europe, jumped 5% as it raised its sales outlook for 2020 after coronavirus lockdowns drove more traffic through its stores and online delivery services.German residential real estate company Vonovia (DE:VNAn) rose 2.9% as it announced an 8% rise in first-half core profits and confirmed its guidance for the year.GBP/USD bulls cheer pullback from 1.2980 attack 1.3100. Fears of the bigger second wave of virus, challenge buyers ahead of the BoE. EUR/USD extends the previous day’s run-up to a three-day top. Dollar lower weighed by doubts about prompt economic recovery.GBP/USD 1.3100GBP/EUR 1.1080EUR/USD 1.1820GBP/JPY 138.53GBP/CHF 1.1945GBP/CAD 1.7397GBP/AUD 1.8215GBP/NZD 1.9702GBP/CNY 9.1082GBP/SGD 1.7961GBP/ZAR 22.616GBP/USD gained further losses on a breakdown of the 1.2970 level overnight however snapped the losing streak ahead of UK Services PMI coming out this morning and Bank of England Monetary Policy Report tomorrow. The pair also cheers the broad US dollar weakness due to the government’s failure of announcing a new relief package from the coronavirus pandemic, finding support at 1.3070 heading into this morning’s European open. The Telegraph reported that the UK chancellor Sunak could hike business rates for 'most valuable properties'. “Currently, the levy is not charged on the first £125,000 of the property selling price, with a 2 percent rate up to £250,000 and 5 percent on the next £675,000”. Analysts see Sterling positive from the news even though fears of the lager wave are somehow expected as British schools are about to open. The British currency, blast past 1.3080 and surged to a high of 1.3170 last Friday, is now testing fizzled upside momentum below 1.31 before the economic data at 9:30 London Time. While we have expected GBP to strengthen since 1.2670 (around two weeks ago), we held the view that the Pound could possibly to move up but limited at 1.3150. The subsequent rapid pull-back has diminished the uptrend impetus significantly and this coupled with overbought conditions suggest the rally in GBP could be coming to an end soon. GBP/EUR was lower by 0.3% at 1.1070 as of 8am London Time. Today’s losses take the exchange rate lower for the weekly by 0.35%. EUR/USD has now moved into a consolidation theme, likely between 1.16 and 1.19. The pair rises to 1.1816 during the Asian session overnight, extending the previous day’s establishment to hit a three-day high as the US dollar weakens across the board. Having said that, the euro/dollar buyer remain cautious ahead of the much-awaited US job data releasing on Friday. Analysts at Danske Bank offer their short-term outlook on EUR/USD, considering Fed’s reflation narrative, which will keep the greenback pressured. Worries over virus developments outside the US have started to surface, so is now the time to get EUR negative again? We doubt that we will witness the large-scale closures seen during the spring and yesterday's price action suggests that one probably needs to look for US rate rises and/or tech outperformance to get very negative on EUR/USD short term. The Eurozone Retail Sales and Services PMIs could entertain the pair traders before Friday’s US data. While the 1.1700-1695 area restricts the pair’s near-term downside, bulls may pause for a check around 1.1910 before attacking the 1.2000 threshold.The greenback continued its drop yesterday in what may turn out to be very temporary recovery. Pandemic woes in the US whilst ten-year Treasury yields continued their drop, sliding more than 6 percent. Economists predict that the US economy could fall off a cliff if the US administration does not offer a plan after stimulus package that ended on Friday. The early consensus for the key Nonfarm Payrolls (NFP) is expected to recede from 2,369K to 1,500K on Friday, which in-turn can extern additional downward pressure on the greenback. Over 40% of the renters in the States are reportedly at risk of eviction if they cannot pay their rent. It is worrying that the Congress will agree on a further stimulus by the end of this week. The non-manufacturing ISM and ADP scheduled for release this afternoon, where we are more likely to see dollar negative signals if the figures come out as market expectation. The dollar index is trading 0.3% lower at 93.067 not far away from the two-year low of 92.523 registered last week. USD/JPY was down 0.1% at 105.64 whilst AUD/USD continued its upward trend at 0.7184 testing a one-year high of 0.7220.Data 3:00pm ISM Non-Manufacturing PMI 55.0 v 57.1.

DAX futures contract in Germany traded 0.2% higher, the CAC 40 futures in France climbed 0.4%, while the FTSE 100 futures contract in the U.K. fell 0.1%. BP (LON:BP), with the oil major cutting its dividend in half after reporting a $16.8 billion loss for the second quarter, after taking a charge of $10.9 billion. Bayer (DE:BAYGN) reported a 9.5 billion euro ($11.2 billion) net loss for the second quarter, following a $10.9 billion settlement of U.S. lawsuits claiming that its weedkiller Roundup caused cancer.U.S. crude futures traded 0.7% lower at $40.73 a barrel, while the international benchmark Brent contract fell 0.7% to $43.83. Gold futures rose 0.3% to $1,980.10/oz.GBP/USD bears catch a breather after a two-day losing streak, pullback from 1.3000 be the key. GBP/USD stays depressed following the break of an eight-day-old rising trend line. Failures to cross March month’s high, lower high formation favour sellers. Bulls seek a clear break of 1.3200 to extend the previous upside. EUR/USD is fighting with the 1.1780 resistance as Tuesday's 4-hour chart is showing the currency pair bounced off 1.17, a critical support. On the flip side, the 1.1735 level is the first support seen. The U.S. Dollar Index was down 0.1% at 93.442. USD/JPY was up 0.1% at 106.05.

DAX futures contract in Germany traded 0.4% higher, FTSE 100 futures contract in the U.K. rose 0.1%, while CAC 40 futures in France climbed 0.4%.HSBC (LON:HSBA), the U.K.’s biggest bank, in the spotlight after posting pretax profits of $4.3 billion, down 65% from the same period last year.U.S. crude futures traded 0.7% lower at $39.97 a barrel, while the international benchmark Brent contract fell 0.5% to $43.40. Gold futures rose 0.4% to $1,982.60/oz.GBP/USD has hit the highest since March amid a massive dollar sell-off and the cable has stabilized under 1.31 after experiencing high volatility. EUR/USD is currently trading around 1.1755, down -0.17% on the day, after having hit a low of 1.1740 during the Asian trading hours. The U.S. Dollar Index gained 0.11% to 93.535.

European shares fall as fears of new virus wave grip investorsWirecard says missing $2.1 billion likely did not exist; withdraws forecastsBeijing coronavirus cases to see 'cliff-like' drop this weekLufthansa shares down as investor battles bailout termsGBP/USD: Clear downside until the 1.2076 low – OCBCEUR/USD Price Forecast: Further downside stays in the pipelineEUR/USD: Correction towards the uptrend line at 1.1152 – CommerzbankCoronavirus update: Germany’s reports 537 new infections, R-rate jumps to 2.88Dollar rises but worries abound.GBP / USD 1.2390GBP / EUR 1.1070EUR / USD 1.1200GBP / JPY 132.50GBP / CHF 1.1790GBP / CAD 1.6830GBP / AUD 1.8040GBP / NZD 1.9250GBP / CNY 8.7680GBP / SGD 1.7300GBP / ZAR 21.555

urope's stock markets rallied on Tuesday morning on two separate factors, neither of which was particularly convincing.Navarro Spooks Markets Over US-China Trade Deal.President Trump has said that the US-China trade deal remains intact and hopes that China will live up to its terms.Blackrock: Success in restricting the spread of COVID-19 and signs that shopping and travel activity was rebounding meant: "we could see the pace of recovery in the second half outpacing other regions, including the United States".GBP/USD seen within 1.2370/1.2610 – UOB; EUR/USD seen at 1.15 on a one-month view – Danske Bank; Dollar up.

Stocks - Europe Slips Amid Fresh Coronavirus Worries Four Years After the Referendum, Brexit Still Haunts U.K. Stocks Dufry (SIX:DUFN) stock climbed 1.5%Atos (PA:ATOS) stock climbed 0.8% Nokia (NYSE:NOK) stock climbed 0.5%Experts criticize UK PM Johnson’s removal of a two-meter social distance rule.EUR/USD seen rangebound for the time being – UOBDollar weakens amid signs of Economic GrowthGBP / USD 1.2480GBP / EUR 1.1061EUR / USD 1.1294GBP / JPY 133.02GBP / CHF 1.1786GBP / CAD 1.6940GBP / AUD 1.8049GBP / NZD 1.9371GBP / CNY 8.9268GBP / SGD 1.7344GBP / ZAR 21.590

DAX futures contract in Germany traded 1.6% lower, FTSE 100 futures contract in the U.K. rose 0.1%, while CAC 40 futures in France fell 0.2%.BNP Paribas (PA:BNPP) set aside 1.45 billion euros ($1.72 billion) in the second quarter to cover credit losses.Swiss Re (SIX:SRENH) posted a net loss of $1.14 billion, hit by coronavirus-related claims.EssilorLuxottica (PA:ESLX) reported a loss of 412 million euros.U.S. crude futures traded 0.6% higher at $40.15 a barrel, while the international benchmark Brent contract rose 0.6% to $43.51. GBP/USD rises to 1.3130, up 0.26% on a day, and is on course for the five-year resistance line at 1.3175. EUR/USD pair is trading at 1.1892 at press time, having put in a 25-month high of 1.1905 earlier on the day.Dollar Index was down 0.4% at 92.648, having fallen as low as 92.523, a new two-year low.

DAX futures contract in Germany traded 0.4% lower, the FTSE 100 futures contract in the U.K. rose 0.3%, while CAC 40 futures in France climbed 0.3%.Airbus Group SE (PA:AIR) announced a fresh cut in production of its A350 long-range jet today..French carmaker Renault (PA:RENA) posted a record net loss of 7.292 billion euros in the first half of this year.Volkswagen (DE:VOWG_p) unveiled a first-half operating loss of 800 million euros, forcing the carmaker to slash its dividend.U.S. crude futures traded 0.1% lower at $41.22 a barrel, while the international benchmark Brent contract fell 0.1% to $44.06.GBP/USD is on the back foot as the Federal Reserve's dovish decision triggered a false break above 1.30. EUR/USD could move beyond 1.1830 in the near-term – UOB. Dollar Index was up 0.1% at 93.498, recovering a touch from the 93.273 level seen earlier, its lowest level in more than two years.

DAX futures contract in Germany traded 0.1% lower, FTSE 100 futures contract in the U.K. fell 0.3%, while CAC 40 futures in France dropped 0.1%.Deutsche Bank (DE:DBKGn) posted a second-quarter loss despite a strong performance at its investment bank. Santander (MC:SAN) also reported a 12.6 billion-euro impairment, while Barclays (LON:BARC) set aside 1.6 billion pounds. Belgian chemicals company Solvay (BR:SOLB) reported a fall in second-quarter net profit. Sanofi (PA:SASY) and GlaxoSmithKline (LON:GSK) have signed a deal to supply Britain with up to 60 million doses of a possible Covid-19 vaccine.U.S. crude futures traded 0.2% higher at $41.12 a barrel, while the international benchmark Brent fell 0.3% to $43.74. Gold futures rose 0.1% to $1,947.30/oz.GBP has moved away from last key resistance $1.2520, climbing to the 1.29 level overnight. The euro obtains the smile and pushes the pair EUR/USD back to the mid-1.1700s. The dollar index this morning is trading 0.2% lower at 93.507, not far removed from the 93.448 low last seen in May 2018. Dollar/Yen is down 0.1% at 104.97.

DAX futures contract in Germany traded unchanged from Monday, FTSE 100 futures contract in the U.K. rose 0.2%, while CAC 40 futures in France fell 0.1%.Peugeot (PA:PEUP) reported a sharp drop in its net profit in the first half of 2020.ING (AS:INGA) said it expects to book a 300 million-euro goodwill impairment charge for its second quarter.Delivery Hero (DE:DHER) has benefited from the lockdown measures to combat the coronavirus.Gold prices have been driven to a record high on Tuesday morning in Asia, closing in on the $2,000/oz level. U.S. crude futures traded 0.3% lower at $41.49 a barrel, while the international benchmark Brent contract rose 0.1% to $43.92.GBP/USD revisits sub-1.2900 area amid US dollar pullback. EUR/USD drops to 1.1722 from 1.1773 on broad-based dollar recovery. Dollar Index was up 0.2% at 93.810. USD/JPY was up 0.2% at 105.58