Lots of politics, little trade

By 26/05/2020News
Morning Stock News

Gold   1693,50
(-2,00%)

EURUSD   1,0799
( -0,86%)

DJIA  24115
(-2,38%)

OIL.WTI  25,095
(-25,47%)

DAX   10609
(-6,89%)

The U.S. markets were closed on Monday, so no strong movements were observed on other exchanges. However, there were several events that took place on Monday which may affect further development of the economy.


DAX

DAX

Strikes have again begun in Hong Kong against the security law, which infringes on the fundamental freedoms of citizens. The U.S. has blacklisted 33 other Chinese companies that are not allowed to do business with. China has expressed discontent and is already prophesizing a new Cold War between the countries. Europe, and Germany in particular, is beginning to show signs of life. The business climate is growing. Although analysts expect Germany’s GDP to fall by as much as 10%, there are hopes that the economy will gain momentum by autumn. DAX is rising and reaches a new monthly high of 11370.


Euro

Most likely, the trade war between China and the US will support the US dollar, which is not at all in favor of the Euro. Due to the holiday in the U.S., the currency practically does not show any dynamics. The direction of movement is undefined and the sideways between 1.0740 and 1.0990 remain.


Oil

Judging by the quotes, OPEC+ promises are being fulfilled in full, while the WTI oil price is at the next maximum. We have noticed that the oil price contains more promises than actions, so such price formation may collapse at any moment. As long as everything goes according to plan, the oil will grow. There are already shale extractors in the U.S. who will be happy to restart their platforms.


Gold

There’s not much change in gold. Precious metal is still at its highs and wants to try to climb higher. It is now clear that there are practically no hikes down in gold. We’re waiting for good data to break out higher. So far, the price has frozen at $1727 an ounce.


What’s waiting for us today?

08.00 Consumer climate index in Germany.
16.00 New home sales in the USA


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