US indexes once again set new records, following the European and Asian markets. Driven by optimism that the global economy will be able to recover from the negative effects of the virus. Signs of slowing the spread of the disease only support optimism. Oil remains strong for the day and sovereign bonds are cheaper.
DOW, SPX and NDX have new highs for the day and ATH. The rally intensified following a report from Hubei province that the number of people infected has fallen significantly this month, and the number of people suspected of being ill has also dropped.
Oil kept levels above $ 51 a barrel even after OPEC lowered its forecast for global demand for “black gold”. Inventory also reported an increase for the week. Crude metals such as copper and iron ore are rising in value, and defensive instruments such as bonds, gold and yen are inferior.
Kiwi rises to its highest levels two months after RBNZ said the effects of the coronavirus would be neither serious nor lasting. The central bank does not plan to cut interest rates further this year.
For investors, confidence is growing that the effect of the virus will be minimal and short-lived.
We expect positive sentiment to persist until the end of the US session, with the indexes attempting to record a new peak or to maintain their high levels.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.