Huge amounts of stimulus overshadowed the pandemic

By 10/04/2020News
Morning Stock News

Gold   1684,68
(+0,01%)

EURUSD   1,0931
( +0,08%)

DJIA  23616,50
(+0,01%)

OIL.WTI  23,195
(+0,11%)

DAX   10665,98
(+ 0,01%)

On Thursday the markets were shaken by the statement of the US Federal Reserve that they are ready to take additional measures to stimulate the economy in the amount of $2.3 trillion. The Fed’s leaders are very persistent in their resistance to the crisis. Together with the president they will stand to the last until the economy recovers.


DAX

DAX

In general, on the optimistic statements of the U.S. Federal Reserve and Christine Lagarde, heads of the International Monetary Fund, markets are growing, not paying attention to the spread of coronavirus. Investors believe that the business will be saved by any means, because huge amounts of money are being injected, so it is worth buying this business while it is at the bottom. The DAX index rises by 2.2% to 10564. The S&P500 index rises by about 1%.


Euro

The euro is strengthening due to increased unemployment claims in the USA. Serious macroeconomic data from the U.S. makes you wonder if the help offered by the Fed will be enough. On the other hand, in Europe it is again difficult to work out a common strategy. There is no way the Eurogroup can agree on the problem of debt distribution. Such long discussions have a negative impact on the Euro, and at the same time the countries suffer financial losses.


Oil

On Thursday, oil did not move much in price and practically remains at the same levels. The OPEC+ meeting is very complicated, countries have to deal with serious issues, and first of all, determine who will have to reduce production. This is always painful for the budget, and underproduction leads to other costs in countries’ development. At the moment, it is expected that countries will decide to reduce production, as there is simply no one to sell oil to. On Thursday, WTI tried to reach the level above $30 per barrel, but could not stay there. The current price is $28.2 per barrel.


Gold

There is not much to write about gold, because the movement of this metal was fully described in previous reviews. The forecast does not change. The attempts to break through the level of $1700 are repeated. Probably, it will not be very good on Friday, because it will close the week, and investors will take profits. It is very possible that next week’s start will be great for gold and for breaking new highs.


What’s waiting for us today?

03.30 Consumer price index in China
14.30 US Consumer Price Index Baseline


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