Another trading week of April ended in mixed sentiment. There were quite a lot of macroeconomic statistics released on Friday in different countries. In most cases these figures turned out to be in negative values and below forecasts.
With different statistics and continuing uncertainty about oil production and OPEC’s decision, the markets split up on different sides. DAX dropped 1.69% to 10336, S&P500 rose 1.39% to 2836. For the S&P500 index, the level of 2800 is like a conspiracy. For the second week the index can’t break through it in any way and consolidate higher. Positive news for the U.S. market is that the number of sick people in the world is not increasing at least. In some American states, some institutions and schools are starting to open. Obviously, the recovery from the crisis will not be fast for all countries.
The European Union is trying to come together to fight the coronavirus and the economic crisis, although this is not going well. European leaders are calling on each other to form pan-European funds to fight the epidemic and help businesses. Europe still has a long and painstaking process of economic recovery from the crisis ahead of it. So far, the European currency does not have enough strength to rise from current levels. The coming weeks will show whether Europe can show that it is an alliance. The Euro traded higher on Friday and closed at 1.0824 .
As far as oil is concerned, it is not clear what direction the market is looking at. Of course, after the sharp fall there was a certain growth and recovery of the price, but the current catastrophic drop in demand, provoked by coronavirus infection does not give a chance to restore the price to its previous levels for a long time. The aggravation of the situation in the Middle East due to Donald Trump’s statements does not add optimism to traders. WTI oil was traded at $17.19 per barrel on Friday.
The quantitative stimulation of the economy by all the largest central banks only help gold. Due to the growth in money supply, the price of precious metal will only rise. Already now gold is targeted at $1800 per ounce, and when the metal reaches this price, it is only a matter of time.
What’s waiting for us today?
12.00 Total number of unemployed in France
15.00 Unemployment rate in Russia
16.30 US Manufacturing Activity Index
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