The epidemiological situation dominates markets.. Oil and DAX are retreating because of Covid-19
Oil and DAX are retreating because of Covid-19.. the epidemiological situation dominates markets
Oil and DAX are retreating: US President Joe Biden is planning a wide-scale investment program
after the Corona aid package worth a trillion-dollar.
Total expenditures are planned at $ 3 trillion.
Therefore, these should be divided into two different sets of measures.
According to media reports, one of them aims to expand infrastructure and also includes investments in climate protection,
while funds of the second program will be used, among other things,
o expand children’s care and free education in community colleges,
which are a kind of intermediate between schools and universities.
Oil is in a difficult situation again
On Tuesday, oil prices remained under pressure, as West Texas Intermediate traded around a $ 61 level,
where a sharp rise in cases of Covid-19 all over Europe led to the ambiguity of oil demand forecasts.
Brent crude which rose yesterday to $ 65.12 a barrel, trades at $ 64.62 today, down by 0.93%.
Meanwhile, a barrel of West Texas found buyers at $ 60.99.
Vaccination operations which are much slower than expected,
besides expectations of inflammation in injuries amid fears of the third wave of Coronavirus Covid-19 pandemic in Europe,
are still continuing to put pressure on prices, creating a state of uncertainty regarding demand recovery.
The spread of the most infected breed of Coronavirus is accelerated in Europe,
surpassing the slow spread of vaccines.
This forces countries to carry out new closing operations.
Germany will extend its closure to contain Covid-19 infection till the fifth month,
while France and Italy have already imposed new restrictions.
In Europe, countries such as France, Italy, and Poland have stressed their procedures in the scale of the fighting epidemic.
Germany, the largest oil consumer in the region, announced that current actions,
which were valid till March 28, were tightened and extended until April 18.
German Central Bank (Bundesbank)
Yesterday, In its statement, German Central Bank (Bundesbank) stated that country’s economy could sharply shrink during the first quarter as a result of severe restrictions which are applied to prevent the spread of the epidemic.
According to “Worldometerat”, countries that have the largest number of daily cases in Europe are France,
Poland, Italy, Hungary, and Germany.
Market participants were confident that oil demand would recover this year.
Disappointment came after the third wave of Coronavirus began in Europe.
In addition, the growth of the dollar has a negative impact on oil markets.
Gold is stable waiting for the Federal Reserve annual report
Before the issuance of the Federal Reserve annual report, which will be released afternoon,
gold price tends to move aside at the beginning of today’s trading.
The price of gold was stabilized on today’s morning,
as April delivery futures slightly decreased by 0.30 to $ 1.737.80 an ounce.
At 5 pm, Federal Reserve Chairman Jerome Powell will present an account of the current monetary policy and economic situation in the United States to the Banking Committee in the US Senate.
Gold price reaction is strongly continuing towards 2 things: US returns and dollar.
US important economic indicators, in addition to indicators of different procurement managers,
are supposed to be announced tomorrow.
Market players are likely to be particularly interested in requests for durable goods.
According to a survey by analysts published by “Trading Economics”,
a slight increase of 0.8% was supposed, compared to( 3.4%+in January).
DAX is retreating..The closure is extended in Germany
Announcement of closure extension in Germany affects investors’ performance,
who are now taking this into their consideration
Yesterday, after DAX was stabilized and slightly retreated,
the German index is also expected to decline by 0.38% to record 14602 points today
after it reached its highest record at 14806 points last Thursday.
Pioneer German indicator is still at a high level as well.
Collective rise for Wall Street indicators
Yesterday, US three main stocks were able to rise, like Dow Jones,
Standard and Poor’s 500 and Nasdaq indicators had gotten a new push.
Performance of technology shares was doing well.
This is partly due to bond revenues decline.
Meanwhile, Biden’s administration can prepare for another fiscal plan worth $ 3 trillion,
which this time will be spent on developing infrastructure and combating climate change,
among other things, according to New York Times journal.
US Leading stocks
Yesterday, US Leading stocks positively closed, as Dow Jones rose by 0.32%,
while Standard and Poor’s index rose by 0.7%, but the Nasdaq index rose by 1.23%.
Investors were very happy, as bond revenues somewhat retreated in favor of technology shares.
However, at the same time, the performance of airlines and companies associated with cruises was weaker among sectors affected by Coronavirus “Covid-19” epidemic.
Last week, Dow Jones and Standard and Poor’s 500 indexes declined by 0.5%and 0.8% in a row,
after their height during the last two weeks.
Nasdaq index also retreated by 0.8% for the fourth week in a row.
Week trading for Asia Indicators
Performance of Asian markets was mostly weak, as the Nikkei index decreased by 0.6%,
while the Korean index Kospi rose by 1%.
In Hong Kong, the stock market rose by 1.6%, while in Shanghai stocks declined by 1.25%.
Australian stocks also declined by 0.1%.