Thursday will be the most significant day of the current trading week, because today is the release of the main U.S. macroeconomic statistics, which will show whether the markets moved correctly this week.
Wednesday has shown that investors are not sleeping and can close their profits at any moment, which they gained on certain positive news. It was clear that investors tried to speculate on those services and companies that were in demand during the pandemic. For example, Moderna, which was the first company to report positive vaccine tests, lost more than 10% of the price, while Zoom, a videoconferencing platform, lost 4%. S&P500 index – still above 3000 and is trying to grow further. DAX on the background of optimism grew by 1.3% to the level of 11657.
The Euro on Wednesday makes a good retest at 1.0990, but still goes slightly below it during trading. All this is happening against the background of the weakening US dollar and aggravation of problems between the USA and China. It would be great to see the Euro already above 1.10, but it is not working very well yet. Maybe, the end of the month and the profit taking on some instruments will move the Euro up even higher.
The active growth of stock markets has measured the passion of investors for the assets of the safe haven, but this does not mean that the growth is over. There are still many decisions ahead of the Fed, ECB and other central banks that are willing to add money to their economies and help their countries. Excess liquidity will certainly strengthen gold as one of the most important assets.
On Wednesday, oil did move away from its monthly highs and entered a correction. The end of the month is still in question. What happens next depends on the OPEC countries and the actual growth of the world economy. So far WTI oil price of $32 per barrel is quite satisfactory for investors. Most likely, in May we will not see a sharp development of the energy market and will return to it in June, when new trends are defined.
What’s waiting for us today?
14.30 Base orders for durable goods in the USA.
14.30 US GDP
14.30 Number of initial applications for unemployment benefits in the USA
17.00 US crude oil reserves
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