Moderately positive global markets

Exchange Rates 04.06.2020 analysis

Statistics showed that at the beginning of the week, the markets were mostly bullish. There were clearly more purchases than sales. The increase was noted in almost all sectors, which was supported by excellent macroeconomic statistics. For example, statistics on unemployment and business activity in the service sector, as well as industry, have become much better than preliminary forecasts. This was unexpected but very good news for market participants. Even despite the fact that the indices have not yet been able to overcome the strategically important value, indicating steady growth of 50 points, investors were not able to refuse purchases.

The de-escalation of the conflict between Washington and Beijing also contributed positively to the situation. There were no serious measures that could shake the economic stability of the United States, and market participants simply stopped responding to the words of Trump, as they actually remained without implementation. The likelihood of a complete breakdown of trade relations between the largest economic powers has practically come to naught. At least analysts are no longer considering such a scenario. Meanwhile, the possibility of further escalation of the conflict still remains, which may force players to switch to sales and consider the precious metals for a safe-have asset.

Market participants seemed to have almost stopped paying attention to the COVID-19 pandemic, which, still continues at present and is in fact seemed to have seriously grown severe this time. It somehow escalated and the epicenter of infection simply gradually shifted toward Latin America and India. Most markets are now concerned about the gradual lifting of the lockdown and the easing of quarantine measures. Some experts have already begun to say that the coronavirus pandemic is too early removed from the accounts, it can still have a significant impact on economic development.

One way or another, the markets are now quite positive, although a little restrained. The retail space of the Asia-Pacific region is almost everywhere showing growth, which averages 0.5%. American stock indexes also confirmed their yesterday’s success. Of course, there was also some correction in the hydrocarbon sector, since the position of OPEC member countries, which intend to continue the policy of reducing oil production, which began two months ago, remains unconfirmed.

The main news today that market participants are looking forward to is the result of the ECB meeting and the statistics that will be made public during it. In addition, investor attention is also focused on the number of applications for unemployment benefits in the United States of America.

Source: Moderately positive global markets

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