Gold 1628,23
|
EURUSD 1,1003
|
DJIA 25157
|
OIL.WTI 45,64
|
DAX 12147,49
|
|---|
The spread of the virus outside China has already exceeded China’s own. In the United States, the first infections appear that have nothing to do with China or with traveling to regions with the infection. In Europe, the virus is rampant. Italy, France are on the verge of an epidemy. Other countries are suffering. There are fatal outcomes. Analysts are raising alarm bells.
The chart of the day – Brent
The American market continued its strong decline on Thursday. During the trading session, the major American indices were down by more than 2%. Many analytical agencies already forecast that the majority of American companies will have problems with profits in 2020. The Bank of America has reduced its global growth forecasts to minimum values. Further it will be even better, if there will be no information in the world on how to treat the virus effectively and how to improve the economy.
EURO
The Euro looks great against a falling dollar. On Thursday, the European currency reached a three-week high at 1.1005. The probability of the US refinancing rate reduction reached 70% already in March. The yield of 10-year bonds turned out to be at 1.25%, which is almost a historic low. The US dollar is losing ground on all fronts. Technically, the trend for the euro remains bullish. The support remains at 1.0955. From above, we have a strong resistance at 1.1000, if the Euro breaks this level and is able to consolidate there, we are waiting for a further exit at 1.1025 and above.
Oil
On Thursday, oil reached its lowest level since 2017. What does it mean? Inventories in the U.S. have declined, economic indicators are falling all over the world. The demand for oil will also fall, because black gold is involved in most economic processes. OPEC is trying to calm down the market and assure that the demand for oil will not decrease more than 310 thousand barrels a day, but does not do it very decisively. Brent trades at $51.20 per barrel on Thursday.
What is waiting for us today?
00.30 Japan Consumer Price Core Index
09.55 Change in the number of unemployed in Germany for February
14.30 GDP per year in Canada
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.