The forecasts are coming true. Due to good corporate reporting of the U.S. economy giants, as well as positive news about the trial of the experimental drug Remdisivir from the company Gilead Science, the main indexes flew up a decent number of points.
Despite the most horrific data on US GDP for 12 years, which fell 4.8% in the first quarter, the S&P500 rose by more than 3% to reach 3000. All countries are looking forward to the medicine, so any positive news makes investors take risks. Germany entered into recession and the recovery is planned not earlier than 2022. Aviation, trade and car manufacturing are in a serious crisis. Already now, the German government is considering the possibility of resuming car production and opening registration companies to at least mitigate losses.
After the announcement by the US Federal Reserve that interest rates will be maintained until the US economy is cured after the coronavirus pandemic, the EURO rushed up and stopped again at the level of 1.0870. Of course, before the ECB meeting on Thursday such a level cannot be easily passed. Investors should understand how the central bank will act in the near future, although we probably will not hear any important statements at this meeting. There is an end of the week and the end of the month ahead, investors will be fixing part of the profit, so there may be some sell-offs in the markets.
On Wednesday, oil reserves in the US turned out to be much better than predicted. They almost halved from 15 mln barrels to 8.9 mln barrels. Excess reserves at the Cushing Hub also declined. Investors are looking forward to the recovery of the US economy and their sentiment clearly improved from this data. The price of WTI oil was traded at $16.9 per barrel and is not going to fall yet.
On Wednesday, the main cryptocurrency under strong buying pressure shot up more than 10% to $8700 for one BTC. The bulls keep going and really want to see this cryptocurrency at $10000. There are only a few days left before the halving, and it is very hot for investors to get additional profits. The level of $8300-$8500 is a serious resistance. If the price can consolidate higher, the road to growth will be open further.
What’s waiting for us today?
03.00 China Productive Sector Business Activity Index
18.00 Volume of retail sales in Germany since the beginning of the year
16.30 Statement on interest rate and monetary policy of ECB
14.30 ECB press conference
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