Daily summary: Crude and stocks soar as risk appetite returns

  • Global equities rose for a second day
  • US crude stocks rise for 1st time in over 2 months
  • Bitcoin price returned above $30,000

European indices extended yesterday gains as investors focused on second-quarter earnings and expectations that the ECB will maintain its dovish tone during tomorrow’s meeting. SAP lifted its outlook for the second time this year due to accelerating growth for its cloud portfolio, while ASML, one of the leading suppliers to semiconductor companies worldwide, posted 38% higher profit in the second quarter. DAX 30 rose 1.36%, CAC40 gained 1.85% and FTSE 100 finished 1.75% higher.

US indices are also trading higher as upbeat earnings reports from Dow members Coca-Cola and Johnson & Johnson added to the bullish sentiment. On the other hand, Netflix earnings were lower-than-expected and third-quarter subscriber guidance disappointed. The risk appetite is reflected by solid performance of energy, travel-related and other cheap cyclical stocks. United Airlines expects a strong rebound in the industry, hoping for a complete return to demand in 2023. One of the highlights of the day was the EIA's oil stocks report. The data came as a surprise as US black gold inventories unexpectedly rose for the first time since May, although market consensus was pointing to a further decline. After the publication of the report upward move continued and WTI is currently trading 4% higher.

The US dollar weakened in the evening against the main currencies except the Japanese yen. CAD gains the most, helped by rising oil prices. Bitcoin bounced off monthly lows and climbed back above the $30,000 mark. 

Bitcoin managed to return above the psychologically important $30,000 level and currently the price is heading towards the resistance marked by the confluence of the 200 SMA (red line) with the downward trendline around $32,260. Source: xStation5

BREAKING: Michigan Consumer Sentiment above expectations
BREAKING: USD sees little reaction to personal spending and inflation data
Chart of the day - USDCHF (30.07.2021)
BREAKING: Markets unmoved by weak German GDP reading
Economic calendar: German GDP report, US PCE inflation
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.