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Global equities rally following a rapid market crash
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British economy shrinks 20.4% MoM!
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China is set to release some crucial reports on Monday
Following yesterday’s market sell-off (in fact the biggest sell-off since March 2020), positive moods have dominated financial markets today. Global stocks from all around the world rebound. Even though Asian markets ended the session in mixed moods, the majority of European indices had seen solid gains. In the final hours of trading, the rally faded away - still, most of the indices finished session higher. Moods in the US seem to be optimistic as well. Wall Street opened significantly higher and major US indices rise roughly 1.50% at press time.
In the morning investors got to know yet another set of dramatic economic data - this time from the UK. British industrial production plunged 20.3% MoM in April while GDP declined by a staggering 20.4% MoM! Macro data turned out to be far worse than expected. Industrial production in the euro zone was a nightmare as well - in April it declined by 17.1% MoM. However, these data does not seem to be so relevant as April is commonly expected to be the worst month of the current crisis. Another data came from the US: the University of Michigan's consumer sentiment was released at 3:00 pm BST. The index rose in June to 78.9 pts (vs exp. 75.0). All three subindices managed to beat the market expectations.
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Create account Try a demo Download mobile app Download mobile appMonday will bring us crucial data from China (industrial production and retail sales). These economic reports could be a proper guideline of how things might developed in other parts of the world. Apart from that, traders will be served some CPI reports as well as NY Empire State Manufacturing Index from the US.
During a rapid sell-off on Thursday, Nasdaq (US100) fell roughly 5% from the recent ATH (area of 10,150 pts). The index is currently trading around the previous ATH (area 9,750 pts). Bulls now give the impression that they have regained control of the market. However, this weekend might become crucial (due to fears of second coronavirus wave). Should the number of new COVID-19 cases in the US skyrocket, the index might actually change its direction and dive again. Source: xStation5
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