Monday is starting well for stock markets. Perhaps, due to the lack of serious coronavirus news at the weekend, it inspires traders. Especially in the U.S. over the past two days, the number of detected cases is falling, although many believe that over the weekend, simply this issue receives less attention.
The US Federal Reserve is very concerned about the condition of banks. According to the results of annual stress tests, it was decided to ban the thirty largest financial institutions from buying back shares until September. All this will lead to regulation of the capital of these companies, lower dividend payments, as well as easier recovery from the crisis in case of a second wave of pandemic. The S&P500 index rises to 3040 on the positive evaluation of the economic recovery in the U.S., which is more than 1% above the opening price, the DAX closed at 12232 and rose by 1.18%.
The situation at GBP/USD is much worse than at EUR/USD. On the eve of the next negotiations on the Brexit, the pound is declining and is moving towards the nearest support level at 1.21. The idea is created that the Bank of England will have to change its monetary policy up to negative rates for the inflow of large capital into the country, which is very waiting for the financial sector. Such actions can lead to high volatility in the markets, as well as attract speculators. On Monday the price of the pair GBP/USD was traded at 1.2280.
The price of WTI oil rose by more than 3% during the trading on Monday. As soon as the markets read any positive news about the fight against COVID-19 or the recovery of the economy, prices immediately gain momentum. Investors have switched their attention to possible stimulation of Chinese economy to support the necessary level of liquidity. If the world’s largest oil importer, China, goes on well, we will see great growth in black gold in the near future.
Gold holds its ground and is not going to give up at all. No one will be surprised that the price of gold will reach $1800 per ounce and will go higher. Everybody is ready for this and just waiting for a certain impulse. Perhaps, serious macroeconomic statistics will be a driver for such growth. The price per ounce on Monday is $1769.
What’s waiting for us today?
03.00 China Productive Sector Business Activity Index for June
08.00 UK GDP since the beginning of the year
18.30 Speech by Mr. Powell, Head of the US Federal Reserve.
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