Things are very bad in the U.S.A

Morning Stock News

Gold   1967,85
(+0,60%)

EURUSD   1,1894
( +0,45%)

DJIA  26234
(+0,08%)

OIL.WTI  40,09
(-0,57%)

DAX   12460,23
(+0,01%)

On Thursday the data on GDP in the USA for the 2nd quarter of 2020 were released. Gross domestic product decreased by 32.9%. This was not even the case during the Great Depression 100 years ago. Yes, many expect the situation to improve in the 3rd quarter. Or maybe not, because the coronavirus epidemic in the United States is still gaining momentum.


S&P 500

S&P 500

At the same time, American stock indices do not pay any attention to the negative. There is too much free money in the market, which simply there is nowhere to invest. Any assets are expensive.
What happens if a large investor wants to sell a lot of shares? He sells them, the price goes down a bit. Immediately, other investors with money buy back these shares for one simple reason. They become a little cheaper and that’s good. And the investor who has sold shares is sitting on the money and does not understand what to do with them next.


Gold

Yellow metal is around 1950-1960 dollars per troy ounce. Bears got a break before they break through the $2,000 level. There’s gonna be a lot of stops behind it again. Everyone understands that this level will soon be passed.


Euro

The European currency has confidently overcome the level of 1.18. As we wrote last week, everyone is already looking at 1.20 on the pair EUR/USD. Most likely, before the end of the presidential elections in the USA, the trend in the pair will be directed upwards. Now all factors contribute to the decline of the American currency.


Oil

Very interesting events on Thursday took place in the oil market. Black gold quotes collapsed by 6% on the news of a record drop in the US GDP. However, a strong directed day did not work out. Someone started to buy back the oil on the fall. And by the close of trading the total daily minus was only about 2%.
What does it mean? Does anyone really think that the situation with the coronavirus is about to go down? There are no prerequisites for an increase in oil demand in the near future. We assume that maybe somebody knows something. For example, we are talking about changes in the OPEC + agreement.


What’s waiting for us today?

03:00 Level of business activity in the service sector in China for July
08:00 Retail sales in Germany for June
11:00 EU GDP for 2nd quarter
11:00 EU Consumer Price Index June


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