Europe’s economy comes to life

Morning Stock News

Gold   1693,50
(-2,92%)

EURUSD   1,0799
( -1,11%)

DJIA  24115
(-0,14%)

OIL.WTI  25,095
(-21,23%)

DAX   10609
(-3,22%)

Tuesday was quiet enough compared to the rally on Monday. Markets were evaluating the statements of the key leaders and once again observed dramatic monologues of the US and Chinese leaders.


DAX

DAX

John Powell addressed the Senate Commission and explained what actions the Fed could take to restore the economy. He assured that the system has many different mechanisms for influence and is ready to apply them. However, there are still disagreements between the Fed and Trump that are slowing down the pace of action. The S&P500 traded mixed, and came close to the SMA200, which, not surprisingly, is at 3000. It’s a very difficult level to take. DAX grew by 0.15% and closed at 11075.


Euro

It’s another good day for the Euro. The ZEW index on economic expectations came out much better than last month. Investors believe in the rebound of the German economy as well as of the entire Eurozone economy. On hopes that the lockdown in Europe will end, the Euro is trying to reach the level of 1.0960, but it is not working well. Next milestone for Euro 1.10. Psychological level and SMA200 level. Of course, it will be very difficult to pass from the first attempt, so it is possible to predict the correction from this level.


Oil

In oil, the bulls prevailed and confidently moved the price of WTI above $30 per barrel. But everybody knows that American shale oil producers can very quickly restart their production, and the price of $30 per barrel can already push them to start producing again. Now investors are closely watching the production level, as the market cannot be called balanced. Probably, we will see enough volatility in oil in the nearest future.


Gold

Gold on Tuesday consolidated near its highs and traded at $1743 per ounce. Joint efforts of the Federal Reserve, the Ministry of Finance and major world leaders, which allocate hundreds of billions of euros and trillions of dollars, may help gold hike even higher to $1800 per ounce.


What’s waiting for us today?

08.00 UK consumer price index for April.
16.30 Crude Oil Stocks Change in the USA
20.00 FOMC Minutes


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