Daily summary: Wall Street surged as the FED rolled out further stimulus package

5:50 PM 9 April 2020
• US Federal Reserve's announced $2.3 trillion loans package to support the economy
• US Jobless Claims higher then expected
• Oil Prices Pare Early Gains

Global equity markets traded higher on Thursday after Fed announced huge loan program to support households, businesses and local governments across the US. Federal Reserve will provide up to $2.3 trillion in loans in order to support the economy ultimately providing a credit backstop. Moods were boosted by hopes that the coronavirus pandemic was close to peaking.

FED actions completely overshadowed the initial jobless claims data which showed a bigger than expected value. Initial jobless claims came in at 6606k against expected 5500k. The University of Michigan's consumer sentiment for the US fell to 71 in April of 2020 from 89.1 in March, missing market expectations of 75. It is the lowest reading since December of 2011 and the largest monthly decline ever recorded.
 
Investors also welcomed the statements from US Treasury Secretary Steve Mnuchin that the US economy could reopen in May and Fed Chairman Jerome Powell which said that the US could recover in the second half of the year if appropriate action is taken.
During today’s session Dow Jones rose 2.0 %, S&P500 went up 2.17 % and NASDAQ is trading 0.71 % higher.

Euro strengthen after German Finance Minister Olaf Scholz advised that a agreement regarding economic support package could be reached today. EU finance ministers resumed talks on coordinated action against the pandemic after they failed to reach agreement on Tuesday due to divisions about whether Member States should set fiscal targets in exchange for new funding, and whether joint debt issuance should be considered. European indexes finished in green today. DAX gained 2.2%, CAC 40 advanced 1.4% and FTSE 100 finished 2.9% higher.

Oil erased most of the earlier gains in another volatile session as markets await the outcome of the OPEC+ video conference meeting.  Initially oil prices went higher after Reuters reported that Saudi Arabia and Russia reached a deal and that production cuts could reach 20 million barrels per day while markets were expecting a smaller 10-15 million cut. However, Russia insisted on such an agreement only when the United States joins in to help balance the market. The US crude is up 1% to around $25.50 a barrel, after jumping as much as 12% to $28.36 a barrel. The Brent crude is up 1.5% to $33.32 a barrel after rising more than 10%. Also, a possible agreement to cut oil production at OPEC+ meeting still brings doubts about whether it will be enough to offset lower demand.

Gold price rose 2.40% as $1,685 on Thursday, a level not seen since March 9th. Silver soared 3.70% as $15.52.
 
Economic calendar for Good Friday  is almost empty. CPI data from the US for March is the main print scheduled for release. During Asian session investors will get to know China’s inflation data. All eyes will be on the upcoming G20 meeting during which Non –OPEC producers will be asked to join the coordinated production cut in order to stabilize the oil market. Major U.S. exchanges will be closed on Good Friday, while the most-watched European markets will be closed on both Good Friday and Easter Monday. Currency markets remain open, though volume is expected to be light. 
Brent (OIL) did not managed to break above the key resistance level at $36.41 per barrel and pulled back towards $31.17 per barrel. As long as the price remains between these two levels traders should expect more sideways movement. However oil traders should expect higher volatility during tomorrow's G20 meeting. Source:xStation5.
Share:
Back
Xtb logo

Join over 935 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language