Daily summary: Global stock markets extend gains

• Wall Street surged on Wednesday
• Another volatile session in Europe
• Coronavirus infections continue to rise

US indices are trading higher after a hesitant opening as US lawmakers agreed on a huge $2 trillion fiscal stimulus package to support the US economy amid the coronavirus crisis, helping to further ease the dollar funding stress. Accordingly to Reuters U.S. Senate Majority Leader Mitch McConnell advised that Senate will move to pass a massive stimulus plan in a bid to mitigate the impact of the ongoing outbreak.  The package includes a $500 billion fund to help hard-hit industries, $350 billion for small-business loans, $250 billion for expanded unemployment aid and at least $100 billion for hospitals and related health systems.

 

Also financial markets reacted positively to news that President Trump plans to end the current wave of lockdowns and restore the economy as close as possible to normal by Easter. This statement came out despite the fact that new infections and fatalities are growing in numbers every day. Today the number of active corornavirus cases in the US surpassed 60,000.

 

Dow Jones rose 5.74% led by Boeing (BA.US) which has asked the government for $60 billion bailout. S&P went up 4.50% and NASDAQ is trading 2.80% higher. A positive sentiment was also seen in Europe, where the main indexes also finished trading in green. After a volatile session Dax gained 1.8% CAC 40 rose 4.5 % and FTSE 100 advanced 4.5%.

Today gold prices fell 1.6%, for the first time in four sessions, due to continuous spread and coronavirus around the globe and liquidity concerns. 

Oil markets turned higher on Wednesday, WTI went up 2.7% and Brent gained 1.6% as US crude oil stocks rise less than expected. However investors are still concern about the dwindling demand and massive oversupply.

 

US jobless claims will be the main macroeconomic relase scheduled for tomorrow that will probably show a record rise in unemployment. Investors will also get to know Bank of England decision on interest rates and retail sales figures from the UK.

 

Of course, news regarding the spread of coronavirus should have the biggest impact on the markets. Market volatility is set to continue as fears of a severe recession worldwide mount.

EURUSD  managed to break above the major resistance at  1.0776 and the pair may attempt to climb higher towards resistance zone located between 1.0901 and 1.0982. However, the long shadow on yesterday's candle may signal that bulls are not determined enough to break this level.  Source: xStation5

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