The markets on Monday were very optimistic. The news that countries are starting to get out of quarantine is heating up investors. In the US the Fed is taking serious measures to stimulate the economy and many traders are already full of desire to buy.
Overall, Monday went very well for the markets. Many are already starting to live in a pandemic and companies are trying to use the current realities to make a profit. So far, only energy prices and uncertainty about future oil production are making any difference. The DAX rose 3% to 10685, with the US indices rising 1.6% on average, which is very good in the current situation. If there are no serious shocks in the future, markets will continue to slowly recover.
At the moment the Euro does not have a certain direction, but the beginning of the week looks more like a bearish one. Although there is a positive trend in Europe with regard to the pandemic, quarantine and isolation have a very strong impact on the EU economies. No growth is expected in the near future until the impact of the virus on the entire EU is clear. On Monday, the euro is traded at 1.0825.
The price of oil is still at its lowest. So far, the situation is very complicated. The amount of storage space is at a minimum and the market is very concerned about it. According to analysts’ forecasts, the situation with oil will not change until the end of June, as demand will remain at the same level.
The cryptomarket opens the week with a moderate positive. Over the last 7 days, Bitcoin has grown by 7% and trading volumes have grown by 17%. There are only a few weeks left until halving of bitcoin, which will bring certain innovations to the cryptocurrency. Cryptocurrencies are more likely to be just as vulnerable as other assets. But the prospects are good. In the current situation, cryptocurrency will be in great demand because of the distance and digitalization of the economy. On Monday, Bitcoin was trading at $7700.
What’s waiting for us today?
09.00 Press conference of the Bank of Japan
14.30 Foreign trade balance in the United States
16.00 US consumer confidence index
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