FOREX TRADING STRATEGY APR 17 - POSITIVE SIGNALS

Apr 17, 2020
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Finally, some good news before this trading week comes to the end. Let's take a look of how the world is dealing with its problems and choose the suitable forex trading strategies.

Hope from Gilead

According to a new report, a group of coronavirus-infected patients being treated with Gilead's trial Remdesivir in Chicago "is rapidly recovering from fever and respiratory symptoms”. This news triggered a 4.4% increase for the biopharmaceutical company in the period after the market closed on Thursday. Gilead's drug is one of the most monitored therapies being studied to treat Covid-19 patients. Meanwhile, the New York Governor extended the blockade until April 15, and U.S. President Donald Trump revealed instructions on reopening the US economy - possibly allowing states and employers to quit most social isolation habits within 4 weeks.

The United Kingdom extended the time to apply restrictions for another 3 weeks when the total number of cases exceeded 100,000; New infections have also increased in Italy, Spain and Germany. Singapore reported the highest daily increase in infections on the second day. New Zealand is currently seeking ways to wipe out the virus after the success of the previous blockade. And new research is showing that your risk of infection from Covid-19 may lie in your genes. Also, can dogs detect viruses? Globally, coronavirus infections have reached 2.1 million cases and the number of deaths currently exceeds 140,000.

Rising markets

Asian stocks are likely to increase as traders wait for the latest economic data from China to assess the impact of coronavirus. US stocks closed with a gain when President Donald Trump outlined a period of re-opening of the country. The futures market soared in Tokyo and Sydney. And US stock futures, traded after market closures, rose in price driven by news that Boeing will continue to produce commercial aircraft in Washington. In a volatile US session, the S&P 500 closed with an increase and the Nasdaq 100 also cleared its losses by 2020. Meanwhile, the dollar appreciated and Treasury bonds were still stable. Oil closed below $20/barrel for the second day in a row.

A bet on technology

One of the leading emerging market investment funds by Goldman Sachs has stepped up its bets on Asian stocks in the volatile first quarter. The $ 1.8 billion Goldman Sachs emerging-market investment fund, managed by Basak Yavuz and Hiren Dasani, has increased the stakes in some of the region's largest technology companies. Tencent, Alibaba, Samsung Electronics and Taiwanese semiconductor makers now account for about 25% of their portfolio from 23% at the end of December. In the Asian market, a 17% drop in the fund's March portfolio marked its biggest monthly loss since the end of 2008. However, the fund has outperformed rivals 82% in the past year and more than 89% of competitors in the last 5 years.

A helping hand

HSBC CEO Noel Quinn has tasked its top bankers to create a new restructuring unit for corporate customers struggling with the coronavirus pandemic. Gregory Guyett, co-director of global banking and markets at HSBC, told employees this week that Quinn CEO asked him and global commercial bank chief Barry O'Byrne to assemble the team. Global team to help customers who are having difficulties in this environment. Patrick Nolan, head of the global corporate customer division, will lead the unit that is not yet established and is appointed head of customer management.

Guyett said the bank will have to support the restructuring of some of its customers, while balancing the needs of the lender itself. Nolan will abandon the leading role of its corporate customer division. HSBC's risk manager Pam Kaur will also be involved in the work. As one of the world's largest lenders, HSBC is likely to be involved in many of the restructuring stemming from the crisis, particularly oil - it has a $ 600 million credit support for Singaporean oil trader - Hin Leong.