• Gold rally continues
• DAX HIT its biggest one-day gain since 2008
US indices traded sharply higher today amid reports that U.S. officials are getting closer to approving a reported $2 trillion coronavirus package to support the economy and to offset the economic impact of the coronavirus outbreak. However despite the better sentiment that prevailed in the markets today, investors are still afraid of the potential size of the recession. Markets will be closely following further reports from Washington, where US lawmakers are to vote on a coronavirus rescue package that includes economic support measures such as tax breaks, checks and saving large companies from bankruptcy. Both sides are also allegedly negotiating issues related to the use of measures to reduce wages. The Dow Jones is trading 7.78% higher, the S&P 500 rose 6.27% and the Nasdaq gained 5.33% .
The Oil price erased some gains in afternoon trading. Oversupply concerns eased slightly as regulators in Texas are considering slashing the output there for the first time in almost 50 years and US government plans to send a team to Saudi Arabia to work on solution to stabilize the oil market. Still, market volatility is set to continue as investors remain concerned about the collapse of the OPEC+ deal and the prospects of a global recession. WTI oil is up 0.60% and Brent crude rose 1.2%.
First investors will get to know RBNZ decision on interest rates. Next German Final Ifo Business Climate index and Consumer Price Index from Britain will be published. In the afternoon the US will publish Durable Goods Orders. Oil traders should pay attention to the U.S. Crude Oil Inventories data. Needless to say, financial markets will pay attention to coronavirus updates.
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