Daily Summary: European stocks extend losses while Wall Street rebound gains steam

• US Stocks pare losses
• European indices finished deeply in the red
• Gold Hits 3-Week High

During majority of today's trading session global financial markets were clearly in a risk-off mode. European indices declined on average over 2%. Losses came amid growing fears related to a second wave of coronavirus infections. Number of deaths in Spain caused by the coronovirus accelerated to 0.8% from 0.68% the day before. Also, a study from Carlos III Health Institute and the National Statistics Institute revealed that 5% of the Spanish population had contracted the virus, which points out that there is no herd immunity in the country. Similar study from Pasteur Institute  showed that 4.4% of the French population had contracted the covid-19 diseased.

It turns out that the rally that the market has experienced since the second half of March was too rapid and premature. The mood was certainly cooled down yesterday by the Chairman of the US Federal Reserve. Jerome Powell warned for a prolonged period of weak growth in the US and closed the hypothesis of negative interest rates. What's more, Donald Trump himself added a bit bitter words that definitely did not improve the mood among investors. US President pointed out that he is not very pleased with the relationship with China and at the same time said that news regarding the coronavirus from Beijing are not very optimistic. Trade tensions are piling pressure on equities, Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago said. "They are certainly kicking the markets when we're trying to recover from the virus' economic hit."

Market sentiment worsened even fuerther after recent US jobless claims report showed the number of initial claims was 2,981 million in the latest week, above market estimates of 2.5 million. However, this marked the sixth straight weekly drop in jobless claims, since topping 6 million in the final week of March. Gold prices rose nearly 1%  at $1,734 per ounce,  their highest in over two weeks after publication of today's claims report. Silver futures advanced 2.4% at $16.05, while platinum futures rose  0.3% at $772.30 an ounce.

At the moment US indices trade in mixed moods. The Dow Jones and S&P 500 both managed to erase earlier losses as financials sector climbed, led by bank stocks. JPMorgan Chase  Bank of America were up more than 2%, while Wells Fargo  jumped 7.4% following a report of speculation it could merge with Goldman Sachs. At the moment Dow Jones is trading 0.64 % higher , S&P 500 rose 0.40% while Nasdaq is trading more or less flat.

Tomorrow investors focus will turns to US retail sales data  that will reflect the impact of stay-at-home orders on the US consumer in April. Besides some other noteworthy data reports will be released tomorrow. Euro Area and German GDP data will be the key releases of the European session while US Industrial Production will be on watch during US trading hours. Apart from that US Michigan Consumer Sentiment reading will be published late afternoon.

USDCAD once again bounced off the key support at 1.390. Yesterday the price broke above the downward trend line. As long as the price sits above it, the upward move looks to be more probable. Key resistance can be found at 1.4289. Source:xStation5