Apr 15 2020 0
The biggest markets all over the world keep crumbling. This is when we must remain a cool head and choose our forex trading strategies carefully. Let's get updated now!
How countries are doing
After announcing that the international agency did not share information about the pandemic, U.S. President Donald Trump will temporarily stop funding the World Health Organization. Yesterday, he said: "WHO has not completed their basic mission and should be responsible for that." Meanwhile, U.S. airlines have reached a preliminary agreement with the Treasury Department to access billions of dollars in aid. As the number of new Covid-19 infections begins to slow down in parts of the United States and states considering social isolation measures, a big mystery remains unanswered for scientists: Who became immune to the disease - and for how long? Meanwhile, two of the world's largest vaccine manufacturers - Sanofi and GlaxoSmithKline - are working together to address the virus when the number of confirmed cases reaches 2 million cases worldwide.
Leaders across Europe are considering steps to escape isolation time: Denmark begins to reopen day care centers and elementary schools. Spain, Germany, and Italy all reported less infection, indicating that the crisis is easing. Meanwhile, Indian Prime Minister Narendra Modi extended the national blockade order until May 3.
The worst in more than 10 years
The International Monetary Fund said the "Great Lockdown" recession would be the worst recession in nearly a decade and warned that the economic slowdown and recovery would be worse than expected. guess if coronaviruses still exist or come back. Yesterday, in the IMF's Global Economic Prospects report since the virus spread and froze major economies later, they estimated that global gross domestic product will drop 3% this year. This is likely to mark the deepest decline since the Great Recession. The IMF predicts next year's growth rate of 5.8%, which will be a record increase since 1980, but largely depends on the "longevity" of the pandemic, its impact on activities. as well as related tensions in financial and commodity markets.
Asian stocks seem to have a fairly quiet start as investors hunt for earnings reports to find evidence of the impact of the coronavirus outbreak. The dollar has weakened, while US stocks have strengthened. The futures markets in Japan, Hong Kong and Australia showed modest gains. The S&P 500 jumped to its highest level in a month while tech giants pushed the Nasdaq 100 down. Johnson & Johnson shares rose after the company announced stronger sales and increased quarterly dividends. Shares of JPMorgan and Wells Fargo plunged because their profits were affected by large liabilities provisions. Treasury Bond yields slipped. Oil prices plummeted on strong demand and the oversupply has invalidated the deal among the world's largest oil producers. Gold price has changed little.
Japan in danger
Once again, deflation is threatening to engulf the Japanese economy. But this time, perhaps because of falling oil prices, it has depleted the momentum of prices from an economy battered by the impact of the coronavirus pandemic. According to calculations by Bloomberg News, lower energy prices can push inflation to below zero from April. The return of the phenomenon of falling prices in the economy is shrinking quickly not only can change the weak bull cycle, but also be able to reverse it, making an unprecedented campaign to prevent deflation of Prime Minister Shinzo Abe and BoJ in vain.
Meanwhile, a researcher at China's largest oil company is working on an interesting approach to price collapse: copying Mexican hedging strategies - using Derivative financial instruments to protect against falling oil prices. And the supply war seems far-fetched: Saudi Arabia may have just signed one of the most significant oil production deals in history, but it reduced its official selling price to Asian customers in May which is higher than expected margin this week.