US indexes remain in positive territory, driven mainly by technology stocks and the prospect that the coronavirus in China will die down quickly and will not continue to bring fear. Corporate reports also support positive sentiment. Oil remains under pressure following renewed concerns that the market is saturated.
China has taken urgent measures to curb the virus that has shaken markets in recent days. Despite the rally today and the desire for optimism to prevail, the stock is moving away from its new highs after it became clear that the virus has already died. Tesla’s market valuation surpassed $ 100 billion by passing Volkswagen AG.
The British pound remains higher than the US dollar. The euro also remains strong, although it is already receding. The Japanese yen is beginning to rise in price as risk assets and gold are depreciating.
By the end of the US session, we expect indexes to remain in positive territory, the US dollar to remain weak, and oil to continue to fall in price after the Canadian dollar sharply declines after the BOC. Rate cut rates jumped to 51% on April 15, putting the currency under pressure.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov