Gold 1693,50
|
EURUSD 1,0799
|
DJIA 24115
|
OIL.WTI 25,095
|
DAX 10609
|
|---|
A very challenging quarter for all world markets is coming to an end. In the current situation, we are entering a new quarter with mixed results. Some areas of the economy showed growth, some fell to record low levels. Summer, obviously, will be very interesting.
Gold
The focus remains on US-China relations. At the current stage, politicians are exchanging various laws regarding Hong Kong, but in any case, further deterioration of relations will affect stock markets. The U.S. real estate market index rose by as much as 44%, which greatly strengthened investors’ confidence in the economic recovery. But still, investors have to be cautious. Coronavirus is staying and not going anywhere yet. The S&P500 index is rising 0.4% on Tuesday to 3071. For the S&P500 it will be the best quarter, for which it rose by 18% on the background of strong support from financial institutions. Europe is also full of optimism, as from July 1, the borders of a part of the countries will be opened and air traffic will resume. The DAX index rose 0.64% to 12310.
Euro
EUR/USD remains within the range and most likely will not move anywhere until the release of macroeconomic data in the U.S., which will be available on Wednesday. Now investors are clinging to every news. If the data comes out very optimistic, the U.S. dollar will sell out, and the pair will go up, as investors will go into risky assets. On Tuesday, the pair EUR/USD traded at 1.1240. The movement will further depend on how good or bad the statistics will be.
Gold
Gold has shown the best growth performance since 2020 and is above the annual opening level. The rest of the market assets, unfortunately, did not show such dynamics. Given this, we can safely say that gold is the best investment since the beginning of 2020. On Tuesday, gold passes the next level of $ 1780 per ounce and renews the seven-year high. We can see that there is practically no sale, and the price is pushed straight to $1800. Most likely, from this psychological barrier there will be a small correction for the gain of strength, but then there will be definitely another attempt of break-down. On Tuesday, the gold trades at $1781 per ounce.
What’s waiting for us today?
09.55 German Manufacturing Index for June
14.15 Change in Non-Farm Employment in the USA in June from ADP
16.00 ISM Manufacturing Index for June.
20.00 Publication of FOMC protocols
Important Notes on This Publication:
The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.