Gold 1799,68
|
EURUSD 1,1272
|
DJIA 25408,50
|
OIL.WTI 39,02
|
DAX 12568,50
|
|---|
On Thursday, appetites for risk decreased significantly due to the growing number of coronavirus cases in the world and in the United States in particular. Even good weekly data on the number of initial unemployment applications did not help.
S&P500
Indices
Next week, neither in the U.S. nor in Europe, governments are not planning to provide financial support to companies. Until July 20, the U.S. Senate is on vacation, and in Europe the nearest EU meeting in Brussels on July 17-18. Therefore, next week the world economy will use the capital that it has at the moment. Will companies be able to hold out? Probably, the lack of incentives will have a negative impact on the decisions taken, and investors will move out of risk assets into the dollar or metals.
On Thursday, DAX closed at 12489 and lost 0.04%. The American market was more scared. The S&P500 index dropped by 0.88% to 3140.
Pound Sterling
The British pound has been growing all week long. But there’s some disturbing news on the market. Boris Johnson said that Britain will not negotiate a Brexit agreement with the European Union. Eventually, negotiations may stop if France and Germany do not make concessions. Because of the conflict, the pound will slow down. On Thursday, the pair GBP/USD approached the daily SMA200 at 1.12680 and started correcting down to the zone 1.26. Further movements will depend entirely on the progress of negotiations between the UK and the European Union.
Oil
Uncertainty remains in the oil market. It is still not clear when demand will recover. The economy seems to be recovering, but problems with rising COVID-19 infection rates can make adjustments to these plans very quickly. On Thursday the price of WTI oil fell below $40 per barrel after the publication of a significant increase in black gold reserves in the United States. Further growth is in big doubt.
What’s waiting for us today?
8.45 Industrial production in France for May
14.30 Producer price index in USA since the beginning of the year
19.00 Number of active drilling rigs in the USA
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.