Wall Street Spurred on by Strong Data
A stellar trading session in Europe so far on Wednesday, with Wall Street eyeing more record highs as investors welcome good news on the economy.
While the stock market recovery has, to this point, been dominated by tech – the undeniable beneficiary of the global lockdown – and aided by central banks slashing rates and promising to leave them there for years to come, there is hope that the data will start to give more cause for optimism as governments and business seek to make a success of the reopening.
Obviously, there will be many setbacks along the way and there are some industries that have been ravaged by the pandemic, but the hope is that the huge stimulus efforts around the world will pay dividends in the tough months ahead. This will be a recovery like no other, the employment support efforts are evidence of that, but even these are limited in what they can achieve and the true consequences of the crisis will become clear in the final months of the year.
Data like we’ve seen this week though will alleviate some of those concerns. The PMIs, while volatile, do offer timely insight into business conditions and employment prospects and what we’ve seen has been really encouraging across the board. A strong jobs report on Friday could be another boost if these numbers are anything to go by. The ADP number today could offer some insight on that.
For a look at all of today’s economic events, check out our economic calendar.
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