This week will be one of the most important for investors. There are plans to publish a report on employment in the U.S. non-production sector. Analysts predict an unprecedented loss of 21 million jobs. The markets will also watch the progress, as countries leave quarantine and begin to recover.
On Friday, Donald Trump said he would raise tariffs for China anyway. So far, that’s just words, but we know the American president doesn’t throw words away. The US presidential election is coming in November and Trump will try to make the most of it for the election campaign. No one can say how such actions will affect the markets. Friday ended in a fall for the markets. It’s the end of the week and month. Investors were fixing profits. European markets were closed, but American markets fell by almost 3%. The S&P 500 lost 81 points and the DOW index lost 622 points.
Coronavirus is still raging in Europe, but the number of cases is falling and countries are in the process of removing quarantine measures. At its meeting, the ECB outlined a new emergency economic support program. Now loans for the organization will be issued at an ultra low rate of minus 1%. During Christine Lagarde’s speech, the euro was losing a lot in price, but closer to closing the markets he managed to recover his position and close at 1.0970. There is a tough week ahead and investors will be watching the actions of all countries, especially Italy, which is in the most difficult situation with the pandemic.
The precious metal is still unable to overcome the sacred levels and another week the price per ounce fluctuates between $1630 and $1730. Probably, the growth of gold is so obvious that this is why it does not grow. But the strongest will win here. The depreciation of the dollar is in full swing. The M2 has reached $17 trillion, which is the biggest growth since 1980. Although gold production has increased by almost 35% this year, demand is growing much faster.
Oil showed a spectacular rebound last week. By the end of the week, WTI held its price at $21 per barrel. Finally, countries are starting to reduce production, and some, like Saudi Arabia, are doing so at an accelerated pace. Due to the emergency measures to reduce production, there will probably be less pressure on market quotations and a temporary recovery of the price. But because of very low prices, one should expect strong volatility in the market, as speculators and big players will start entering now.
What’s waiting for us today?
03.00 China Productive Sector Business Activity Index
09.55 Index of business activity in the German manufacturing sector.
16.00 US industrial orders volume
17.00 GDP in Russia since the beginning of the year
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