Gold 1604,83
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EURUSD 1,1047
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DJIA 25501,50
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OIL.WTI 46,10
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DAX 11932,22
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One of the most challenging weeks for the entire world economy since the global economic crisis has ended. U.S. indices have fallen more than 10% from record highs. Many analysts believe that there are enough reasons for global economic growth and the current decline is only a correction.
Chart of the day – Dow Jones Industrial
A sufficient number of important economic indicators are coming out this week, which should clarify the situation a little and provide data for investors. On Saturday the data on the production index in China was released, which fell to record values for the last 5 years. This way China did not fall even during the global crisis. All this raises great suspicions for investors whether the second economy in the world will be able to recover as quickly as investors hope. We will also keep a close eye on the comments of the Fed’s executives, as a rate cut was expected in March.
Currencies
We have a super Tuesday coming up this week. Investors will follow the voting in 14 states of the United States, which will determine the leaders in the presidential race. The US dollar is still showing weakness. The Euro is making another weekly high on Friday and closing at 1.1029 . The Japanese Yen strengthened very
strongly on the background of the market sell-off. All this leads to investors looking for a private place to save their money and not to take strong risks.
Oil and Gold
Such a rapid decline in oil prices has not happened for more than a year. The pressure on OPEC is rising. Saudi Arabia wants to further reduce oil production in order to restore demand. Although OPEC has already met this week, there is no optimism that oil prices will recover quickly.
Gold fell on Friday and experienced the worst decline since 2013. Such a fall together with the rise of the Japanese Yen can only be described as a normal profit taking. For a long time there were no pullbacks in this market and here they appeared. The simultaneous fall of the US dollar has further affected the price of the precious metal.
Spring begins, and the markets will come to life. We are looking forward optimistically and hope that in the near future the world economy will survive all the shocks and continue to grow.
What’s waiting for us today?
02.45 Manufacturing Index from Caixin in China
9.55 German Manufacturing Index for February
14.30 UK Manufacturing Index for February
16.00 US Manufacturing Index for February
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