Daily summary: US stocks trade mixed on record consumer confidence drop

• European stocks finished session in green
• US consumer confidence plunged to record low levels
• Many countries plan to ease coronavirus-induced lockdown measures in coming weeks

European indices extended yesterday gains, as sentiment has been supported by news that governments across the globe have announced plans to gradually lift restrictions in coming weeks, including Italy and New York, the most affected regions in the world. Among single stocks, Santander rose near 5% despite the bank posted an 82% loss in Q1 as overall loan-loss provisions rose 80% after the bank set aside €1.6 billion to offset the impact from Covid-19. UBS shares rose after the company reported 40% higher profit. German financial services company Wirecard dropped over 20% after it published results of an investigation by auditor KPMG. DAX 30 gained 1.3 %, CAC40 advanced 1.4 %, FTSE100 finished 1.9 % higher.

 

US stocks erased early gains after weak  US consumer confidence reading, with the present conditions index falling the most on record amid a sharp contraction in activity and rise in unemployment claims. Earlier in the session, the Dow Jones was trading a six-week high on after  3M, Merck & Co, Pfizer and PepsiCo  reported better than expected quarterly figures.  Also investors welcomed the news that more states including Ohio and Illinois plan to lift restrictions. Alphabet, Ford and Starbucks will report first quarter results later in the day. Today Dow Jones rose 0.22 %, S& P500 is trading nearly flat and Nasdaq is trading 0.60% lower.

Despite optimism regarding further relaxation measures oil swung between gains and losses during today’s  volatile session, as investors remained concerned about storage capacity.

Gold prices pared earlier losses to trade slightly higher above $1705 an ounce. Further declines were held by poor economic data from the US and by a weaker dollar. The dollar index fell 0.2% to 99.85. Prices were also supported by the awareness that much of the monetary stimulus introduced by central banks since February will take much longer to reverse.

Silver futures traded 0.9% lower at $ 15.07, having shortly dropped below $ 15 an ounce for the first time this week. Platinum futures gained 0.8% to $ 783.25, while copper futures were trading flat at $ 2.39 a pound.

Fed decision on interest rates and Chairman Powell press conference  will be the main events  scheduled for tomorrow although expectations are low for more central bank easing. However investors should keep an eye out for comments from Chairman Powell about how long the Fed expects the recession will last. Earlier investors will also get to know CPI figures from Australia and advanced GDP reading from the US. Oil traders will be looking at inventory numbers this week, in particular the build at Cushing, Oklahoma, the WTI delivery hub. On the earnings front Microsoft, Facebook, Tesla, Samsung, MasterCard, Boein Co., Ebay, YUM! Brands Inc., Spotify, Deutsche Bank will report their quarterly results.

USDCAD broke below 1.40 and is heading towards major support at 1.3909. Should downbeat moods prevail, resistance at 1.3709 may come into play. Local resistance can be found at 1.4289; however bulls will first have to deal with the downward trend line. Source: xStation5

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