As we estimated yesterday, the S&P 500 index opened with a gap up – at 3198.00. The US Federal Reserve continues to pump the stock market with new money. Investors are well aware of the current state of most American companies – the world economy is stagnating after quarantine.
The U.S. stock market showed slight growth during trading on Monday. And the Nasdaq updated its all-time high. Optimism for investors is being added by applications for the development of a vaccine against COVID-19. Good corporate reporting shows that unemployment situation did not reduce consumer demand as much as expected.
Particular attention this week will be focused on the reports of major Wall Street investment banks. The main risk is the massive delinquencies in loans, negatively affecting the bank balance sheets.
On Monday, gold continued to be in an upward trend. It looks like it seeks to test the local high of $1829.80 per troy ounce, which was reached on July 08.
The growth of yellow metal is justified. The coronavirus is not improving in any way and the US dollar is weakening against other currencies.
Despite the growth of gold, the stock market and oil, Bitcoins are still in a narrow corridor. Today, the first cryptocurrency reached a price high of $9343. The longer the narrow corridor compresses, the stronger its exit in one direction or another. The last time such a low volatility was observed was at the beginning of March 2020, when the strongest fall followed, to the levels of $3500.
What’s waiting for us today?
08:00 Harmonized Consumer Price Index in Germany for June
08:00 UK GDP for May
11:00 Business sentiment index of ZEW Institute in Germany for July
14.30 US Consumer Price Index June
15:30 Address by the Governor of the National Bank of Switzerland Jordan River
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