What's next? As lockdowns have been extended in Europe, likely, the next PMI reading will also be bad. However, the stock markets are forward-looking, and I suspect that they will be more interested to see what will happen with the development of Covid-19, and how the Chinese economy is doing, for clues to what may…
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EUROPEAN SHARES Share markets opened lower everywhere in Europe on Thursday as uncertainty remains the overriding sentiment and has pushed investors into taking any profits generated by this week’s recovery attempt. The fact remains that investors from around the world have welcomed the recent historical batch of monetary and fiscal responses to coronavirus and these…
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OIL Risk-on remains predominant on markets. This is moderately helping the oil price in its attempt at a difficult recovery, as investors are still worried about the huge oversupply that is likely to remain the main topic for the next few months. The WTI price jumped up to $25 in the first part of the…
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Hardest hit industries lead historic rally It was the sectors that have suffered the most in recent weeks that led Tuesday’s mammoth rally, with the S&P 500’s energy names rallying 16.3%, financials 12.8% and industrials 12.8%. Within the industrial sector, airlines had the best day with a 19% gain; Delta Air Lines climbed 21% despite…
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GOLD The gold price finds itself the perfect environment with first the Federal Reserve unleashing its potentially unlimited stimulus package, followed by the closure of some Swiss gold refineries due to coronavirus. Therefore, it is little surprise that the price is jumping, despite the temporary return of risk on sentiment to markets. Moreover, the huge…
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Semiconductor names a standout as stocks continue slide While the S&P 500 sank 2.9% on Monday, with ten of its 11 sectors in the red, chip makers were a rare bright spot. The semiconductors sub-sector of the Information Technology sector gained 4.1%, led by names including Intel, Advanced Micro Devices and Nvidia which rose 8.2%,…
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In addition to the consumer confidence survey data, the release of the "Initial" PMI for March is expected to indicate the performance of the industrial sector and will provide insight into the extent and depth of the turmoil. If we look at the services sector, which already showed signs of turmoil in February after the…
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Fibonacci retracement here is based on the ongoing downward movement which paused in the second half of last week. The 38.2% appears to be an important area, with price failing twice to break above it on Thursday and Friday. There is no longer any indication of oversold on this timeframe from either Bollinger Bands or…
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During the 2008 global financial crisis, caused by the implosion of US housing market, Japan released packages for over ¥15 trillion to combat the financial crisis. Liberal Democratic Party policy chief Fumio Kishida said: We need more drastic measures. Policy chief at Komeito, the LDP’s coalition partner, Noritoshi Ishida suggested granting fixed amount without setting…
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EUROPEAN SHARES Shares tumbled globally on Monday, with prices returning to last week’s lows as the spread of the deadly virus continues to have a big impact on market sentiment. Even though most markets tried to consolidate around major technical support zones last week after one of the steepest declines in decades, investors’ trading stance…
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