Yesterday the financial markets were marked by a rise in the value of the main world stock indexes. The serene speech of the president of the Federal Reserve (Fed), Jerome Powell, as well as the general confidence felt that economic impacts caused by the coronavirus will not be so great, were the two main factors that explained this increase. Concerning the latter, the Chinese medical authorities have announced that they expect the spread of the virus to be controlled in April - and this could be seen as a source of confidence for investors.
It is common, in a booming stock market, for the demand for more secure assets to tend to be lower. This was the case in Europe and its debt market, where the yields of the government bonds for the main economies have increased.
As a consequence, and at a time when the market is apparently more confident, the Dollar started to correct against the Euro.
With regard to the Pound Sterling, it is possible to observe the continuous correction of the last few days. In addition, yesterday was strongly driven by news that came out in relation to the estimates of the English Gross Domestic Product, which was above expectations. As a result, the Pound ended up having this strong appreciation throughout the day.
With regard to crude oil, raw material prices rose again during yesterday's session. Contributing to this was a meeting between Vladimir Putin and Igor Sechin of OPEC. The aim of the meeting was to discuss a possible cut of 600,000 barrels per day. Apparently, it will only be decided at a next meeting to be held on the 5th and 6th of March.
Gold, on the other hand, on days marked by confidence and less risk aversion, a day like yesterday, tends to decrease in value.
© 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 firstname.lastname@example.org.