Here is what you need to know on Wednesday, June 17
It was quite a busy day on the news front. Global equities closed with substantial gains, but high-yielding currencies edged lower against the greenback as Retail Sales posted a record percentage monthly increase, up by 17.7% in May.
US Federal Reserve Chair, Jerome Powell, testified before Congress. He repeated that uncertainty is significant due to the ongoing crisis. He also said that corporate bond-buying probably won’t be aggressive and is more of a contingency plan. This latest comment triggered a downward knee-jerk in US indexes, although they trimmed most of such losses ahead of the close.
UK employment data was mixed. According to the Office for National Statistics, the ILO unemployment rate in the kingdom held at 3.9% in the three months to April, beating expectations of 4.5%. On a down note, the number of people claiming jobless benefits rose by 528.9K in May, worse than anticipated, while the April reading was upwardly revised to 1032.7K. The claimant count rate jumped to 7.8% vs. 5.8% previously.
Optimism surged over a potential COVID-19 treatment with a common steroid, according to a study developed in the UK. Nevertheless, cases in Florida and Texas soared, reviving concerns about a second wave. Also, Beijing warned about a “serious” outbreak and moved back to strict lockdown measures.
Tensions surged in the China-India border, with at least 20 Indian soldiers killed amid a dispute in the Kashmir region.
The EUR and the GBP eased within range against the greenback, retreating from fresh weekly highs achieved during the European session. Commodity-linked currencies also held within familiar levels against their American rival.
Spot gold closed the day little changed around 1,726 a troy ounce seesawing alongside the market’s sentiment. Crude oil prices posted a substantial advance, retreating partially ahead of the close. WTI settled above $38.00 a barrel.
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