Market sentiment analysis:
- Trader sentiment remains broadly positive despite rising coronavirus cases in the US and Australia.
- Better than expected ISM figures from the US Monday are outweighing disappointing German industrial production data Tuesday and gloomy economic projections from the European Commission.
- While many markets are trading sideways, Nasdaq[1], Gold[2] and Copper prices[3] are all continuing to trend higher, suggesting further gains from a technical perspective.
Sentiment positive towards Nasdaq, Gold and Copper
Three markets are looking technically positive at the moment while many others move broadly sideways: US Tech stocks, Gold and Copper. The Nasdaq 100 index continues to trade close to its record high, Gold at its highest for around eight years and Copper at levels last seen in January.
Copper Price Chart, Daily Timeframe (January 7 – July 7, 2020)
Chart by IG (You can click on it for a larger image)
The advance in both Tech stocks and Copper – which is seen as a good indicator of global growth – suggest that market sentiment remains positive despite rising coronavirus case in the US and Australia, disappointing German industrial production data and gloomy economic projections from the European Commission. Better than expected ISM figures from the US Monday may still be offsetting the latest numbers.
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar[4] this week, at the IG Client Sentiment page[5] on the DailyFX website[6], and at the IG Client Sentiment reports[7] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[8] podcasts.
