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Stock indices rebound following yesterday’s pessimistic moods
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Gold prices keep rising
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Oil prices surge over 2%
On Wednesday stock indices tend to rise as yesterday’s pessimistic mood vanished into thin air. Asian stock markets closed higher (apart from Shanghai Composite) with HSCEI rising as much as 0.96% and Nikkei 0,89% up. The majority of european indices rose as well, in many cases with gains around 1%. Major US indices opened higher too.
In terms of coronavirus updates, there have been more than 75 thousand cases with 2,010 deaths worldwide. China’s officials mentioned possible further measures in order to help its economy recover from the outbreak. Following Apple’s warning, some new companies briefed about rough time for their businesses in Asia, for instance Adidas and Puma. Interestingly enough, IMF informed that it sees a rebound in global growth in 2020 despite coronavirus uncertainty.
Gold prices keep rising today after breaking $1600 level during yesterday’s session. Bulls are still pushing the price higher as gold is now trading at around $1608. The apparent reason for higher demand for gold may be a potential fallout from the coronavirus outbreak with gold regarded as a real safe haven. Moving to other commodities, oil prices surge with gains around 2% with Brent nearing $60 a barrel.
EUR/USD is trading flat but still below 1.08 level. One should particularly pay attention to FOMC minutes as it may spur some volatility. The US dollar is still in a comfortable position after positive data from the US housing market. The recent reading indicated that building permits jumped 9.2% MoM in January to 1.551 million. These are actually the highest figures since March 2007.
Tomorrow investors should pay attention to retail sales report from the UK as well as crude oil inventories from the US. Also, employment change in Australia may be of big importance for AUD traders.
Bulls are still pushing the price higher as gold is now trading at around $1608. Source: xStation5
