TOPICS DISCUSSED IN THIS MARKET BRIEFING:

• European stock markets end in the red
• On Wall Street, the S&P 500 sets an all-time high
• Chart of the day – EUR/USD: End of consolidation

EUROPEAN STOCK MARKETS END IN THE RED

European stock markets ended lower on Tuesday, the trend having reversed shortly after the opening of Wall Street despite the records recorded by the Standard & Poor's 500 and Nasdaq Composite indices, all in reduced volumes, summer holidays oblige.

The session remained rather sluggish against a backdrop of fears related to the coronavirus and its consequences, such as border closures that could continue. The decline remains very measured compared to the risk we run around the world.

For six months and the outbreak of the crisis, every day brings its share of bad news on the front of the pandemic and its health and economic consequences.

The trading session was also marked by a sharp decline in the dollar, to the lowest in more than two years, against the euro.

Thus, the CAC 40 index lost 0.68% to 4,938.06 points. The Footsie lost 0.83% and the DAX 30 fell 0.30%.

ON WALL STREET, THE S&P 500 SETS AN ALL-TIME HIGH

The S&P 500 and Nasdaq hit record highs in session and closing on Tuesday, as U.S. markets returned to pre-coronavirus levels after sharp losses rocked markets. However, the index had collapsed by more than 30% between that date and March 23.

The severe restrictive measures imposed by some States in the face of the galloping advance of Covid-19 in certain areas of the United States, in New York in particular, raised fears of a plunge in economic activity and corporate profits and a surge in unemployment.

But since then the government has stepped up to the plate with its vast support plan for households, businesses and local authorities that has helped limit the damage.

Billions of dollars in fiscal and monetary stimulus have since pulled Wall Street higher. Stocks in the technology sector were seen by investors as the safest to emerge from the crisis.

However, fears persist due to high tensions between the United States and China and the inability of parliamentarians to agree on a new plan to support the economy and fears related to Covid-19.

As a result, the Dow Jones lost 0.31% to 27,844.91 points. The Nasdaq advanced 0.73% and the S&P 500 gained 0.23%.

Otherpoints on financial market news

• forex

If Wall Street chains the records, the dollar, it, depreciates for the fifth session in a row and is now trading at the lowest in more than two years against a basket of reference currencies (-0.52%).

The greenback continues to suffer from the Ultra-accommodative policy of the Federal Reserve and the widening of US deficits, two factors that support equities.

• petroleum

Oil markets also swung into the red during the session, caught up by questions about the evolution of demand.

Brent lost 0.07% to $45.34 a barrel and U.S. light crude WTI lost 0.65% to $42.61.

Economic calendar of the day:

CHART OF THE DAY – EUR/USD: END OF CONSOLIDATION

Several factors have been weighing on the greenback for several weeks. The first source of concern for economists is the indebtedness of the United States, already very high before the pandemic, which continues to rise. Finally, the fall in interest rates and the Fed's abundant liquidity have also weakened the US currency.

Graphically, the euro was consolidating in a range between $1.1875 and $1.1710, so the exit from the top paves the way for new bullish prospects. The pair should therefore resume the path of the rise and head towards the next target located at $ 1.2040. The market does not show signs of weakness or shortness of breath, so the flow of buyers remains impact for the moment.

However, investors will scrutinize the minutes of the Federal Reserve's July monetary meeting, which will be released today at 8:00 p.m. Jerome Powell's announcements are likely to create volatility across all dollar pairs.