After the markets got all macroeconomic data on Thursday, a calm trading started. While Trump is thinking about measures to be taken against China, markets are optimistic and continue to grow moderately.
In Europe, as in the United States, there are moments that indicate the beginning of economic recovery. The U.S. dollar, which, though strong, always plays against risky assets, tends to fall following the growth of markets. In general, the day ended on a positive moment for the markets, as life after quarantine is getting better and the economy is starting to work. On Thursday, the S&P 500 traded at 3060, which is already above 3000, which was very difficult. The DAX added more than 1% on Thursday and closed at 11781. The economy is recovering.
The Euro has finally passed the level of 1.10 and it is a very significant event. On the weakening dollar, investors believed in the Euro, as very soon the EU government will have to implement a project of recovery measures worth 500 billion euros. All this was very positive for the pair, especially when it was detailed how much and which country will receive help. Of course, it is very important for the Euro to consolidate itself above the level of 1.10 now, so that it can try to climb new heights.
Today comes the moment of futures expiration on the CME exchange, which usually brings turmoil and considerable volatility. Bitcoin was able to hold out during a pandemic, although in many ways investors were simply not comfortable with cryptos at such a difficult time. So far, the $10000 mark for Bitcoin has been one of the most powerful levels. Many crypto enthusiasts are really looking forward to it. But experience shows that Bitcoin is very bad with powerful levels. So far, we are watching how the situation develops and how the coin will behave when it comes to this serious level of resistance.
Gold does not give up its position in the market, although the stock market shows that the assets are gradually turning into risky ones. Perhaps this is part of the money that the U.S. Federal Reserve and the ECB were going to pump into the financial economy. The gold was correcting as we had anticipated before, and continued to rise to its highs. The end of the week may not bring a conquest of the highs, but it should close at the current levels.
What’s waiting for us today?
11.00 Consumer price index in Europe.
14.30 GDP Canada.
14.30 Number of initial claims for unemployment benefit in the USA
17.00 Speech by Fed Governor Powell
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.