New fall of the black gold

By 29/04/2020News
Morning Stock News

Gold   1693,50
(-0,84%)

EURUSD   1,0849
( +0,26%)

DJIA  24115
(+0,32%)

OIL.WTI  25,095
(+40,04%)

DAX   10609
(-1,04%)

This week is quite difficult for all sectors of the economy. In the U.S., corporate reporting is coming out, which will show how bad things are for companies in the current situation. If the giants do not report well, it is likely that the rally in the US market, which lasted several weeks, will stop.


AUD/USD

The market is very fragile right now. Any breaking news or wrong actions by central banks can send stock markets down. Traders are now solving very difficult tasks, and should focus on a very large layer of statistics. In the current situation, investors are encouraged by the loosening of quarantine measures in some leading countries. DAX is growing by 1.27%, American S&P500 and DOW traded mixed. The price remained around the opening values. S&P500 – 2880, DOW – 24200.


AUSTRALIAN DOLLAR

The Australian dollar feels good after China started to recover its industry. The AUD/USD is now approaching the level of 0.66, which started the decline in early March. In the coming days, the Australian dollar will try to consolidate at this level, and further try to pass it higher. All hope is for a stable stock market, as the price of this pair largely depends on it.


Oil

The events of a week ago with the price of the May futures falling in the negative zone may be repeated. On Monday the price of June oil contract WTI fell by 25% to $ 12.7 per barrel, on Tuesday the fall continued by another 14%, to a minimum of $10.66. If the dynamics continues, the price of June futures may turn out to be negative a week before its expiry. And the collapse itself may be even stronger than last time…


Gold

Gold has been at its highs for two weeks now. Rising unemployment, economic turmoil and the lack of a cure for coronavirus are still straining most countries. Demand for physical gold is rising in China and India. Unprecedented cash injections into the largest economies will inevitably lead to the spin-off of inflationary processes, which in turn will affect the value of gold. The level of $1800 per ounce is very close and soon we will see how it will be tested.


What’s waiting for us today?

03.30 Consumer Price Index in Australia
14.30 US GDP for the quarter
16.30 US crude oil reserves
20.00 Fed interest rate decision


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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.