Optimism returns to the markets

By 23/04/2020News
Morning Stock News

Gold   1693,50
(-1,18%)

EURUSD   1,0828
( +0,07%)

DJIA  24115
(+3,29%)

OIL.WTI  25,095
(+20,71%)

DAX   10609
(+ 1,60%)

On Wednesday, optimism returns to the world’s trading platforms, although there are virtually no reasons for such growth. Even a small pause in the negative news line had a positive impact on traders. All the more so as the cost of energy resources started to recover.


Gold

Gold

In the U.S., the reporting season begins. These reports will start to show corporate damage from the coronavirus pandemic. As long as markets grow optimistic that the government won’t give up on them. An agreement has been reached between the White House and the Senate on another package of assistance to companies to counter the economic crisis. The DAX index closed at 10415, 1.6% above the previous day, while the S&P500 index rose by more than 2.5%.


Euro

The Euro has been sideways for the eighth consecutive month and the last four trading days the trading range has not exceeded 100 points. Market sentiment is generally improving, but it is still very far from returning to a “normal” state. In the current case, the good dynamics of shares is against the US dollar, so probably in the coming days the Euro will try to get out of the range and break through the level of 1.09. At the end of Wednesday, the EUR/USD pair is trading at 1.0815.


Oil

Millions of barrels of oil are now in tankers, on the high seas, and with great effort continue to look for their buyers. There is a very ambiguous energy situation in the world and it is not yet clear where it will lead. The June futures for WTI oil on Wednesday fell to $10 per barrel, but by the end of the day managed to recover to $14 per barrel. In many respects, the price will depend on the actions of exporting countries. The place in ground storages is almost all occupied, and 1 out of 10 supertankers in the world is already a floating oil storage. So far, we are satisfied that the market has not collapsed entirely and this is very good.


Gold

Gold recovered all its Tuesday losses on Wednesday and confidently overcame the $1700 per ounce level. Investors buy gold much better than other precious metals such as silver or palladium. This indicates that the metal is believed and given a rather important place in saving money during the coronavirus pandemic and difficult economic situation. With this kind of mood, gold is soon above $1800 an ounce.


What’s waiting for us today?

02.30 PMI service sector index in Japan
08.00 UK retail sales volume
14.30 Number of initial unemployment applications USA


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