- Oil prices rose significantly yesterday as countries eased isolation measures and a report issued by Goldman Sachs Bank was optimistic about the rise in oil next year due to the decline in production.
- The US Treasury said it plans to borrow about $3 trillion in the second quarter of 2020, which is five times higher than the 2008 level during the financial crisis.
- US and Asian stock indices rose yesterday, as traders were optimistic after the gains in energy markets and the easing of worldwide quarantine measures.
- Gold prices are trading within limited ranges, around $1700 per ounce, due to tension between the demand for gold as a safe haven and the rise in the dollar.
- According to Reuters, a government source in India confirmed that the country’s imports of gold decreased by 99.9% during the month of April, the lowest level in 30 years. The country imported only 50kg in April 2020 compared to 110.8 tons in April 2019.
- Today, important economic data from the United States of America is expected. This data will reflect the economic damage effected by the coronavirus in April.
Stock indices around the world managed to rise due to the rise in oil prices. This eased concerns of other global economic fallouts due to the recent deterioration in the energy sector, while news of the easing of global isolation measures pushed equity markets higher.
Yesterday it was reported that the number of new daily infections of the coronavirus has decreased over the past four days, from 94550 to 79582, resulting in the relaxation of isolation measures which has contributed to the improvement in investment appetite.
At the same time, traders will follow US economic data closely, which may reveal how much the US economy has been affected by the spread of the coronavirus. Also, traders will follow any developments and political statements regarding economic and political relations between America and China.
There is concern that the trade war will reignite, due to the latest accusations against China by the United States concerning the origin and cause of the COVID-19 outbreak.
Today, the German Constitutional Court ruling will be issued regarding the constitutionality of explicit monetary transactions by the European Central Bank. This ruling may impact European financial markets and the price of the euro.
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EGM Securities Team.
