US stocks looking strong as Q2 comes to an end

Chris Beauchamp IG

European stocks have stumbled today but their US counterparts are holding up well on the final day of Q2 trading, Chief Market Analyst at online trading platform IG.

Europe falters but Wall Street keeps rallying

A wide gulf has opened between European stocks and their US counterparts today, as the final trading day of the quarter arrives. While US stocks have Fed cuts and the likely passage of the budget bill to look forward to, European names continue to fret about a possible trade showdown with the US. It’s never wise to read too much into the movements at quarter-end, and the lack of news flow only compounds the problem.

Stocks look back on a choppy quarter

Equity markets, and investors themselves, have been on a remarkable journey in Q2. From the terrifiying lows of April to the dizzying heights of the past week, the rebound has caught many by surprise. As we head into Q3, investors are still fretting about inflation and a possible recession, but these threats seem much less imposing than they did three months ago.

Author

Chris Beauchamp

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.