The market no longer reacts to the virus

By 18/05/2020News
Morning Stock News

Gold   1693,50
(-2,77%)

EURUSD   1,0799
( -0,13%)

DJIA  24115
(+2,14%)

OIL.WTI  25,095
(-15,33%)

DAX   10609
(+0,76%)

Several weeks of May showed that markets are starting to live in a new way. News of the coronavirus is falling into the background, and it has no impact on the current situation. Most investors are now focusing on the news on the economic recovery of the leading countries.


WTI

WTI

On Friday the markets tried to take profit. But from the middle of the trading session, the market started growing. It was reported that the U.S. government could vote for a 3 trillion dollar aid package. It is a huge amount of money and if it is released, of course, the same S&P 500 index will not be dropped. So on Friday, we saw a recovery. The S&P500 is still there at 2800, the DAX has risen slightly to 10490.


British Pound

Friday was what we were expecting. The pound overcame technical support level 1.22 and rushed down. Due to the lack of progress on Brexit, as well as the strengthening of the dollar, the pound showed weakness. Probably, further movements on the decline of the pound will continue. There is no positive news and data from the UK to stop the decline.


Oil

WTI oil on Friday tried to go down to $30 per barrel. Positive news about production cuts, as well as forecasts of oil demand make investors buy. So far, the situation for oil has stabilized and investors’ interest to this instrument has increased. If we pass the level of $30 per barrel, we can safely say that the fall is over.


Gold

Gold updated its annual high at $1750 an ounce on Friday. By the end of the trading session, the price had fallen, but it is obvious that it is very difficult to take such strong levels from the first time. As we wrote, the gold is waiting for an impulse and negative news to go higher. The situation in the economy has a positive impact on the price of gold. In the near future, gold will try to break through these highs and come up to $1800 per ounce.


What’s waiting for us today?

01.50 Japanese GDP
17.30 NAHB Housing Market Index


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