Stocks advance on optimistic trade comments

Summary

- Stock markets push higher on optimistic trade comments
- Donald Trump may meet with Iranian President
- France and the United States reached an agreement on digital tax
- Turkish lira flash crashed at night
- Gold remains higher at the beginning of a new week

Global financial markets are trying to recover from Friday’s weakness at the beginning of the new week. A range of optimistic comments made over the weekend and earlier today hinted that the United States and China may get back to the negotiation table soon. Such a turnaround after Friday’s trade war escalation encouraged investors to buy riskier assets and caused equity markets in Europe and the United States to push higher on the day. Nasdaq is leading gains at Wall Street after the United States and France reached an agreement on a digital tax.

When it comes to the FX markets, the US dollar can be found among the best performing majors along with the Australian and Canadian currencies. The US domestic data could have played a role there as domestic durable goods data came in better than expected and Dallas Fed manufacturing index climbed back into positive territory. Emerging markets’ currencies are trading somewhat mixed today. Turkish lira experienced a flash crash shortly after FX market opened after the weekend and at one point was trading over 10% lower against the USD.

What one may find interesting is the fact that in spite of USD strength and a kind of de-escalation in trade war that occurred this morning, precious metals are trading higher. Oil prices rallied today in a bid to recover from Friday’s slump. However, much of the gain was erased during Trump-Macron press conference. During the presser it was said that US and Iranian Presidents may meet in order to look for the solution to the diplomatic spat.

BREAKING: DE30 above 14,200 pts!
USD keeps pushing euro down
Chart of the day - EURUSD (08.03.2021)
Economic calendar: Middle East tensions and US stimulus
Morning wrap (08.03.2021)
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.