The European stock markets exchange grew for the most of the day of yesterday in response to news of the development of a vaccine that could counteract the effects of the coronavirus. Basically, the expectations of being closer to a possible solution to this problem have brought confidence to the European market. With this, the main European index appreciated 1.23%.
Once again, in line with what has happened in the past few days, the preference for higher risk assets in the stock market led investors to withdraw from the debt market. Debt interest rates in most European countries rose again as a result.
Along with these events, on the other side of the Atlantic, good news were released for the United States. Employment and PMI data for all sectors excluding manufacturing, both above expectations, led to the appreciation of the dollar. Therefore, with good data for the USA and a departure from the debt market in Europe, it was possible to observe the euro losing value against the dollar.
As for the EUR/GBP pair, it is possible to see a decrease in its value, largely for the same reasons that we have just mentioned. However, good results in relation to the services PMI ended up reversing the downward trend.
Oil, still in response to the meeting of the technical committee of the Organization of Petroleum Exporting Countries (OPEC) and Russia, which took place yesterday, ended up appreciating considerably.
Regarding gold, the yesterday's change in its price is no longer so obvious. Initially, we might think that a greater appetite for riskier assets would lead to a drop in the price of gold. However, what we can conclude with the asset's appreciation as of part of yesterday, is that investors are possibly taking advantage of the current low price in order to diversify their portfolios.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.