(11 AUGUST 2020)DAILY MARKET BRIEF 1:Sterling firm on encouraging data.

European markets opened the week on a neutral note, the US’ blue-chip stocks gained on Monday, while tech giants retreated with the exception of Apple shares. Investors moved capital to industrial stocks. Oil edged higher and Asian stock indices advanced the most in a week.

But there is no specific news supportive of the current positive market vibe. US policymakers didn’t find a midway on the next fiscal relief package, and the Covid-19 cases topped 20 million globally.

Yet, investors are happy to live with the mounting global infections as long as they do not trigger a new round of strict confinement measures.

Activity in FTSE (+0.81%) and DAX futures (+0.42%) point at a positive open on Tuesday.

On the data deck, the US JOLTS job openings rose to 5.9 million at the end of June versus 5.4 million printed a month earlier. The data came in line with Friday’s improved jobs figures.

The somewhat better investor mood dragged the gold price near $2000 per oz on Tuesday, as the US 10-year yield rose to two-week highs. Despite losing $60 in the past three sessions, gold remains in the overbought territory, hinting at the possibility of a deeper downside correction in the near future. Next important support is eyed at $2000/1980 area, the psychological level and the latest resistance before the price of an ounce burst above the $2K mark.

Silver however shows a better performance in line with the boost in industrial stocks, with the price of an ounce consolidating above the $28 mark despite the meaningful setback in gold. The metal has potential to extend gains toward the $30 handle.

WTI traded near $42.50 per barrel, as Aramco whose profit plunged by more than 73% in the last quarter, said the global oil demand will continue improving. Yet worries regarding the pace of recovery could top the appetite prior to the 200-day moving average, $42.90 pb.