• Gilead Sciences' (GILD.US) new experimental drug show signs of being effective in treating coronavirus
• President Trump plans to reopen American economy
• Stocks traded in green on hopes for coronavirus treatment
European indices finished today's session higher as investors hope that an experimental drug developed by Gilead Sciences could help treat Covid-19. The markets have also responded positively to the news that some countries will start loosening the restrictions imposed to combat the rapid spread of the coronavirus despite the fact that the number of infections is still increasing. Dax finished today’s session 3.2% higher, CAC40 rose 3.4% , FTSE 100 gained 2.8 %, IBEX35 advanced 1.7%.
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Open account Try demo Download mobile app Download mobile appU.S. stock markets opened sharply higher only to erase some of their gains, as President Trump unveiled plans to reopen the US economy. States that have seen a consistent decline in the number of coronavirus infections can allow public interactions in a month. US indexes were also supported by an 7.7% rise in Gilead Sciences (GILD.US) stock and by news that Boeing (BA.US) is planning to partially resume production at its Washington state plant from Monday. The dollar index dropped slightly to around 99.8 after two days of gains. Dow Jones advanced 1.98%, S&P rose 1.8% and NASDAQ gained 0.73%.
Hopes that a coronavirus treatment is near completely overshadowed the recent disastrous US economic data and more importantly, today's GDP data for the first quarter from China which fell by 6.8% y / y and almost 10% compared to the last quarter of last year. In addition, retail sales fell by more than 15% in March. This is a smaller number compared to February, however analysts expected a decline of just 10%. More importantly, China reported worrying death statistics from the Wuhan region, adding more than 1,000 cases today. Despite this, sentiment in Asian markets remained very positive.
There are no major data prints scheduled for release on Monday besides China’s deposit and loan rate . On the earnings front IBM, M&T Bank Corp., Zions Bancorporation and Philips N.V will publish their quarterly results. Next week, investors will try to asses whether the virus is at its peak or has reached its peak in some countries and regions. Needless to say, financial markets will pay attention to further updates regarding coronavirus outbreak.
USDCAD – yesterday bulls failed to test the 1.4289 resistance level. Today price made a small pullback and is heading towards major support at 1.3909. This level is also being strengthened by previous price reactions and crosses with the downward trend line. As long as the price sits above this confluence zone, upward move may occur. However if the bears take control of the market then support at 1.3709 may come into play. Source:xStation5
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