FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
46,182,636Confirmed
1,197,507Deaths
33,390,208Recovered
Fetching Location Data…
Advertisement
Advertisement
Vladimir Zernov
U.S. Stock Market

U.S. Sets A New Coronavirus Record

The markets are closed today in observance of the Independence Day holiday but traders will still keep an eye on the developments on the coronavirus front.

The U.S. has recorded more than 55,000 coronavirus cases on Thursday, setting a new daily record for both the country and the world.

Advertisement

At this point, the stock market has mostly ignored the continued spread of the disease in the U.S as the economic data is pointing to a quick rebound.

The recent Non Farm Payrolls report showed that 4.8 million jobs were created in June. The Composite PMI report, which is expected to be released on Monday, is projected to show that Composite PMI has increased from 37 in May to 46.8 in June.

Numbers below 50 show contraction so the economy is not expected to be on an upward trajectory but the pace of decline is slowing down fast and a rebound is considered to be around the corner.

Most likely, the U.S. will continue to report scary coronavirus numbers during the next week. Thus, market’s optimism will be put to a serious test.

Advertisement

Gold Remains The Leader Among Safe Haven Assets

The rampant money-printing from the U.S. Federal Reserve has put some pressure on the U.S. dollar, and the U.S. Dollar Index is stuck between 97 and 97.5 after being as high as 103 in the acute phase of the crisis.

Meanwhile, traders’ attention has switched to gold which has recently managed to settle above the key resistance at $1750 and continues its upside move.

I’d note that many gold stocks are still well below the highs reached in May while gold has settled near yearly highs which creates a good setup for further upside in gold mining equities.

WTI Oil Is Still Struggling To Get Above The $40 Level

Another topic that is certainly worth following in the upcoming week is whether oil will be able to develop upside momentum above the $40 level.

Such a move will be bullish for the stock market because it will lift oil-related stocks and also because it will show that oil traders see signs of recovery.

Oil is a physical product so it is very sensitive to changes in supply/demand balance. The supply side is currently under control due to coordinated supply cuts, so tangible improvements on the demand side will immediately present themselves in the form of higher oil prices.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US