Daily summary: Global financial markets end the week in mixed moods

6:43 PM April 24, 2020

• European stocks finished session lower
• US indexes struggle for direction
• US congress passed new stimulus package

European indices ended today's  session in red. Market sentiment worsened after Gilead Sciences' experimental drug Remdesivir to treat coroanvirus proved ineffective. Yesterday European leaders agreed to to establish a recovery fund worth at least €1 trillion which aims to help countires affected by the pandemic, however no further details were presented. Today’s macroeconomic data also disappointed as both retail sales figures from UK and German Ifo sentiment index came below expectations. In the last session of the week DAX  lost 1.7%, CAC 40 finished 2.3 % lower and FTSE 100 fell 1.3 %.

During today's session US indices swung between small gains and losses. US Congress signed an massive $484 billion aid,  while President Trump administration said it might extend its national social distancing guidelines until the summer. Recent data showed orders for non-defense capital goods excluding aircraft rose 0.1% last month, compared with analysts’ estimates of a 6% plunge. Also some of the US governors announced plans which would allow some of the companies to resume activity on signs the pandemic was peaking in some of the worst hit parts of the country.
"We are past the peak and slowly, but surely, all the states that have not had major cases will gradually re-open, and the market is taking that as a signal that demand is going to come back," said Thomas Hayes, managing member at Great Hill Capital LLC in New York.On the earnings front, both Verizon and American Express results came above expectations.  Today Dow Jones is trading near the flatline,  S&P500 rose 0.3 % and Nasdaq is up 0.57%.

WTI oil  was trading above $17 a barrel  today as investors welcomed prospects of further production cuts. Kuwait will start to reduce supply before May 1st and according to Reuters, Russian oil companies will cut their crude oil loadings from Baltic ports and Black Sea's Novorossiisk in May to 5.42 million tonnes, the lowest level in 20 years. Brent crude prices erased losses to trade around $22 a barrel.

The price of gold has fallen this afternoon by 0.9% to US $ 1715 per ounce, but is well on its way for a weekly gain as concerns regarding the  global economic recession have increased and central banks around the world have stepped up efforts to support  economies hurt by the pandemic.

There are not any market moving data releases scheduled for Monday. On the earning front Bayern (BAYN.DE), Adidas (ADS.DE), CMS Energy Corp (CMS.US) will post their quarterly results.

The Fed meeting on Wednesday looks interesting given that  President and CEO of the Federal Reserve Bank of Cleveland Loretta Mester has hinted that the Fed has not finished with its easing measures. Investors speculate whether FED could introduce negative interest rates or maybe even decide to purchase commodity futures. The chances that the Fed will make such a move are rather small, but given the recent turmoil in the oil market, nothing should be completely ruled out.

GOLD prices failed to reach the key resistance level at $1747.39/oz and pulled back. Should the ongoing correction last, gold may be set to test short-term support at $1700/oz. However, the more important bulls' camp can be found near the $1661.32 /oz  zone, where one can also find a 20-hour moving average (green line). On the other hand, in case bulls regain control then the price may retest the $1747.39 level. Source:xStation5.

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