Global equity markets rebound on Friday after the tragic Thursday session

Autor: Financial Market
Timp de citit: 2 minute

Most stock indexes around the world soared yesterday, attempting to recover losses from its worst trading session since the 1987 market crash the day before. Markets continue to assess the spread of the coronavirus and measures taken by the US government to offset the economic impact of the disease. At the same time, New York already declared the state of emergency and established restrictions on public gatherings. At the end of the session, the Dow Jones closed + 9.36%, the S&P 500 went up 9.29% and the Nasdaq gained 9.35%.

The virus epidemic is gaining momentum, only yesterday over 5000 new cases have been reported. This number does not include new patients from France and Italy, therefore we can estimate that the total number of new cases may be around 9,000 which would be a record high. Many countries decided to close schools and public institutions and many social events have been cancelled and postponed, in an attempt to contain the spread of the coronavirus. The epidemic does not spare local politicians either. The Mayor of Miami Francis Suarez has tested positive for coronavirus after event with Brazil President Bolsonaro, according to an analysis by XTB Online Trading.

Dow Jones, S&P500 and Nasdaq year to date evolution. Source CNBC

Also, President Trump held a press conference at the White House yesterday to discuss the coronavirus outbreak in the United States. Accordingly to Bloomberg the US President declared a state of national emergency.

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Gold prices plunged also yesterday, continuing this week’s massive sell off triggered by the spread of coronavirus around the globe. Gold had the worst week in over three years as investors decided to sell the precious metal in order to pay the margin calls. Gold prices went down -3.86% to $1,528 an ounce.

European markets also had a slow but positive evolution at the end of the trading day: DAX gained 0,77% to 9232.08, London Stock Exchange FTSE100 2,46%, CAC40 1,83% and the italian FTSE MIB +7,12%.

Source: CNN Money

The United Arab Emirates have announced an increase in oil production to over 4 million barrels per day from April 1, 2020. Oil producers from Russia will meet next week to discuss production prospects. Russian Energy Minister advised that oil prices could rose to $40-$45 per barrel in the third and fourth quarter of the year. However accordingly to Reuters, analysts expects WTI to trade around $30.37 in the second quarter. The oil prices rebound yesterday, WTI is gaining 1.14% and Brent went up 2.20%

The economic calendar seems to be very light on Monday. Besides industrial production from China and Empire Manufacturing Index from the US there are no major market moving data scheduled for that day. Therefore headline news should have the biggest impact on trading at the beginning of the week.