The markets are in a state of euphoria

By 27/05/2020News
Morning Stock News

Gold   1693,50
(-0,98%)

EURUSD   1,0799
( -1,61%)

DJIA  24115
(-3,56%)

OIL.WTI  25,095
(-26,52%)

DAX   10609
(-7,39%)

The coronavirus vaccine is planned to be developed by the end of the year. Such great news from American pharmaceutical companies give impulse to all sectors of the markets.


AUD/USD

In the USA, the S&P500 index finally rose above 3000. This is the best value in the last two months. The USA is very optimistic about improving the economy in the near future and restoring business activity. The market in Europe has also grown well, although there are doubts about further developments with the Euro and the litigation between the ECB and the German bank. The DAX closes at a two-month high of 11504.


Euro

The weakness of the US dollar makes it possible for the Euro to retest the level of 1.0990, which is unable to do so for the second month. Analysts believe that the bottom of the crisis in Europe was passed in April, and now it is time for a long recovery. Meanwhile, the ECB is preparing a plan to buy bonds without Bundesbank participation. If the conflict between the banks continues, it will make some adjustment in the euro rate. It is likely that the movement of the euro will go down until the ECB brings clarity to its new program.


AUSTRALIAN DOLLAR

On Tuesday the Australian dollar rushed after the stock market. The resistance of 0.66 has passed, and then begins the hike to 0.6720 and then to 0.68. However, the tension between the USA and China may prevent the Australian dollar from rising. Trump will perfectly inflate the situation during its election campaign, and it will hit all risky assets, including the Australian dollar.


Gold

During the American session, gold fell in price. Due to the rapid growth of stock markets, capital inevitably flows from the safe haven assets to risky assets. Probably, profit fixation has already started by the end of the month. Gold traded at the level of $1713 per ounce and came to the next support line.


What’s waiting for us today?

09.30 Speech by ECB Chairman Christine Lagarde
20.00 Fed minutes
22.30 Weekly crude oil reserves in the USA


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. 68% 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.