FOREX TRADING STRATEGY APR 8 - DEALING WITH PROBLEMS

Apr 08, 2020
Tags
Categories

Every country in the world is having their own ways of dealing with the consequences of the virus. Check out the news and seize your opportunity. Read carefully and choose the most suitable forex trading strategies.

Dealing with the virus

The United Kingdom and New York have reported the worst daily deaths since the epidemic began, even though some European countries said they were planning to reduce the blockade and Italy. reported the least new cases since March 13. However, some areas in Europe are facing serious drug shortages. China, meanwhile, said it has not recorded any deaths for the first time since the pandemic hit in December - the news came a day before the blockade was lifted in Wuhan. - where pathogens were first discovered in humans.

President Donald Trump said the World Health Organization's travel advice was wrong, even though he tacitly accepted backlash around the world and reduced the Covid-19 export ban on masks and other protective equipment. In another development, Mr Boris Johnson, who was transferred to intensive care on Monday, is now in a stable condition and Indian ministers advised Prime Minister Narendra Modi to partially lift the blockade. In addition, after an initial reluctance, more and more countries around the world have used masks. Cases of coronavirus infection worldwide have reached 1.39 million and the number of deaths has exceeded 79,000.

Going down

Asian stocks are likely to suspend a rally that lasted for two days after US stocks plummeted and investors weighed signs of a slow coronavirus spread over a faster death rate. The dollar weakens. The futures market in Japan, Hong Kong and Australia also went down. The S&P 500 futures contract slipped at the open in Asia. The S&P 500 index fell 0.2% after rising 3.5% to meet the market definition of an increase - up 20% from the bottom in March. Treasury bonds fell, the yen appreciated again. Oil fell to its weakest level since the start of the month as investors weighed whether the world's largest oil producers could reach an agreement to cut production to compensate for unprecedented demand losses due to the coronavirus epidemic.

Facing reality

The coronavirus shock has inspired influential Chinese economists and officials to participate in an unimaginable debate: Should Beijing drastically reduce its economic growth target or even give up completely. safe? The target for gross domestic product growth is usually announced at an annual meeting of the national legislature in early March, which will guide economic policy for the rest of the year. However, that target has been delayed due to a virus blockade and it is still unknown when the National People's Congress will take place, leaving economists and markets in darkness. An ambitious target somewhere around 6% would indicate a massive stimulus could be implemented. A more realistic figure, in line with analysts' forecasts of about 3%, would signal the continuation of current support measures. Although economists are almost certain that China's central bank will not imitate other central banks in releasing large-scale monetary stimulus packages at any time, investors are still betting on that.

Take your chances

An almost abrupt shutdown of the economy has threatened the survival of companies in distress and even healthy companies are in critical condition. However, this also creates a special opportunity for over a decade, which is to offer investors a range of financial options, with the prospect of promising profits as the world operates again. again. Goldman Sachs is seeking to make the most of that precious opportunity when companies are desperate for cash in a recession. The Wall Street Company, which has the largest investment base of its peers, is looking to raise $5-10 billion. They will focus their cash flow on debt-like instruments that rank higher in the capital structure and create a bridge for companies to overcome economic uncertainty.

Managing debts

Of all China's efforts to prevent the economic damage of coronavirus outbreaks, an important development is almost neglected - the creation of a national bad debt asset manager. first in 20 years. Galaxy Asset Management Co. won approval in mid-March to transform into a financial asset management company, obtaining a license to buy bad debts directly from banks across the country and the ability to borrow at interest rates. relatively low. According to S&P Global Inc, the economic disorder from Covid-19 threatened to increase by 5.6 trillion yuan ($790 billion) - more than double the amount given by Chinese banks. Galaxy Asset is the first state-owned bad debt manager established since the creation of the so-called four giants in 1999 to help clean up a mountain of bad debts at the nation's largest banks.