The market’s not going to rest

By 18/06/2020News
Morning Stock News

Gold   1693,50
(-1,91%)

EURUSD   1,0799
( -3,94%)

DJIA  24115
(-7,75%)

OIL.WTI  25,095
(-33,89%)

DAX   10609
(-14,02%)

It’s time for the markets to slow down a little and take a break from volatility. The summer of 2020 is special after all. The activity on the markets is obviously overestimated and it is not yet clear where it will lead.


Gold

GOLD

Wednesday’s markets behave in a very different direction. Probably due to lack of macroeconomic data, lack of loud statements from politicians. Even Donald Trump has been quiet for a while and has not made any harsh statements. There is no further clear trend, and most likely we are entering a phase of waiting for the big players’ actions and decisions of large investment funds and central banks. On Wednesday, the DAX index rose by 0.54% and closed at 12380. The S&P500 index has also grown by a modest 0.5%, but it can be seen that it is not yet very clear on what mood to grow higher.


Euro

The European Union has made every effort to reach an agreement with the UK by the end of 2020. This is a great step for the European Union to further settle relations over Brexit. Rather, EUR/USD pair will be in a small range in summer. The focus now is on the central banks to solve their local problems and try to restore the economy. Wednesday for EUR/USD pair ended at 1.1230.


Gold

There’s nothing wrong with the gold market yet. As long as the US Federal Reserve’s corporate debt buying program is in place, gold will not go anywhere lower. Now a certain range has been formed, but soon, buyers will have to prove themselves. On Wednesday, gold was traded at $1726 an ounce.


What’s waiting for us today?

08.00 New Zealand GDP for the 1st quarter of 2020
09.30 Swiss National Bank interest rate decision
13.00 Minutes of the meeting of the Bank of England. Interest Rate Decision


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.