The week started with optimism

By 07/04/2020News
Morning Stock News

Gold   1659,16

EURUSD   1,0824
( +0,29%)

DJIA  22469

OIL.WTI  26,985

DAX   10215
(+ 0,02%)

It is already April, and the situation in the world economy and financial markets looks very alarming and not very predictable. Markets are highly dependent on many factors, so Monday’s bullish growth is probably the result of news of a slight improvement in the Coronavirus pandemic.



This is not the first or the last crisis in the world economy, but what is most alarming is that in the movement of stock indices and commodity prices there is less real economy, but more random factors. On Monday, major indices rose quite well, but it was more like a technical correction before another wave of decline. The DAX rose 5.7% and closed at 10072, while the S&P500 rose more than 6%. Although the S&P500 rose impressively, the rally looks weak. The bulls are facing tough resistance at the current level.


The Euro stays under pressure. The fight against the virus is very slow and the economy and especially small and medium sized businesses are severely affected. A meeting of the Eurogroup will take place today at which we would like to hear a strong solidarity on fiscal policy for the near future. If the results of this meeting are similar to the previous one, where there was a complete lack of agreement among the leaders of financial markets, then the euro could suffer very badly. On Monday, EUR/USD traded at 1.0780.


The oil market is now very much dependent on political decisions. The OPEC meeting has been postponed to April 8-9. The US has made it clear that it is not going to reduce its oil production and in this situation it has a much greater margin of safety than small players in the market. The meeting will be the key one for prices, but even if the decision to cut is made, the demand for oil will remain squeezed due to the virus spread. The maximum we can see in the near future is the WTI oil price reaching above $30 per barrel.


The first trading day of the week showed the current investors’ sentiment. A strong rise in price per ounce indicates that the appetite for risk is completely lost, and investors are trying to wait out the volatility and uncertainty in the markets. Some technical correction is possible in the coming days, but the level of $1700 is already very close and we think that gold will try to break it this week.

What’s waiting for us today?

06.30 Decision on interest rate in Australia
08.00 Volume of industrial production in Germany
12.00 Eurogroup meeting
16.00 Canadian Business Activity Index

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.