The growth of stock markets continues

By 12/02/2020News
Morning Stock News

Gold   1565,47
(-0,14%)

EURUSD   1,0911
( -0,07%)

DJIA   29300
(+0,25%)

OIL.WTI  50,59
(+1,30%)

DAX   13627,29
(+ 0,01%)

Of course, we are talking first of all about the growth of the American market, which is showing new highs. It may seem that the situation is a bit absurd. There are huge risks hanging over the markets, and they keep growing. However, experienced traders understand that the situation may remain absolutely absurd for a long time.


S&P500 chart of the day

SP500 chart of the day
The latest news that the whole world is discussing. It turns out that the coronovirus tests are wrong in about 30-50% of cases. So there may actually be 2 to 3 times more infected. As we noted in the previous newsletter, only one question is critical. Whether the epidemic will start to spread in the world at the same rate as in China.

EURO

On Tuesday, the European currency interrupted its 6-day decline. The euro/dollar almost touched last year’s lows and pushed up. As usual, the markets took a break, removing the stops of traders, waiting for further decline.

GOLD

Gold dropped slightly after 4 days of growth. Nothing has changed fundamentally. As central banks continue to print money endlessly, yellow metal looks like one of the main assets protecting against inflation.

BITCOIN

The second such asset is Bitcoin. After a small correction, it shows new yearly highs. A new idea begins to unfold. While the Chinese banks were closed due to New Year’s Eve, a huge number of settlements between China and the outside world were made in cryptocurrencies. This is what analysts are drawing attention to as one of the main reasons for the growth of the first cryptocurrency.

What awaits us today?

02.00 New Zealand Reserve Bank Interest Rate Decision
02.00 Accompanying letter from the Reserve Bank of New Zealand
11.00 EU industrial production level for December


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.