Investors will be focusing on US stocks today, after the country’s markets closed modestly higher in the previous session.
Context: US stocks closed in positive territory on Monday, after recording losses earlier in the trading session. Markets were propelled by optimism around an economic recovery, which overshadowed worries of the weekend protests.
Details: Investors were hopeful of the worst of the coronavirus outbreak being over. The hopes overshadowed concerns over National Guard units being deployed in certain cities to control the protests against police brutality towards African Americans following the death of George Floyd.
Meanwhile, the US reported an increase in the ISM (Institute for Supply Management) manufacturing index to 43.1 in May, from an 11-year low of 41.5 in the previous month.
After recording a gain of 4.3% in May, the Dow rose around 92 points to settle at 25,475 on Monday. The S&P 500 gained 0.4% to 3,055.73, while the Nasdaq 100 rose 0.7% to finish at 9,552.05.
Shares of Pfizer declined by more than 7% on Monday after the drug-maker announced the discontinuation of trial for its breast cancer treatment. Coty’s shares spiked over 20% after the company announced plans to sell a major stake in its beauty and retail haircare units to KKR & Co.
In other news, WTI (West Texas Intermediate) crude for July slipped 0.1% to end at $35.44 a barrel on Monday, while August gold fell $1.40 to settle at $1,750.30 an ounce.
What to watch: Investors will continue to monitor coronavirus numbers, with total infections exceeding 6,273,400 globally. The US has so far confirmed over 1,811,270 cases with around 105,140 deaths.
The economic calendar is light today, with the US expected to release the Redbook index and ISM New York current business conditions index. The latter index had tumbled to 4.3 in April, from a reading of 12.9 in March.
Other Markets: European indices were trading higher at 9am GMT, with the FTSE 100, German 30 and French 40 up by 0.4%, 2.6% and 0.9%, respectively.