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The first trading day of 2020 – Market Overview

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Miguel A. Rodriguez
Miguel A. Rodriguez
05 listopad 2022
2020 ended with little activity in the markets, something expected at the end of the year, but that was not an obstacle for the North American indices to reach record highs.

The jobless claims figure published last Thursday with lower requests for unemployment benefits, below 800k, is a positive sign, especially if one considers that the Federal Reserve's main objective is the return to full employment.

Step by step, DowJones30 recovered all the territory lost during the crisis. Today it has traded at the highest levels in its history at 30,654, without the RSI indicators still showing signs of exhaustion, overbought, or divergence.

The approved fiscal stimulus policies, the ultra-expansive Fed monetary policy, and especially the appearance of vaccines that are already being administered to the population around the world, have been essential factors for cyclical stocks, which mainly make up this index, recover driven by a better outlook for future economic growth and consumption in particular.

Global PMI readings

In this sense, global manufacturing PMI data is being published today, and so far, there is a stagnation in the recovery levels that we had witnessed in previous months.

Caixin PMI in China 53 vs. 54.8 expected, in Europe 55.2 vs. 55.5 expected. These is the data for December, and it’s been influenced by the new measures to restrict mobility due to the increase in cases of infections in the world. This afternoon the US Manufacturing PMI is released.

In general, investors' mood is festive even though infections have not receded. Some problems with the distribution of vaccines have appeared both in Europe and in the United States.

The logistics of vaccines will be an element to be taken into account by market analysts since the speed of the administration of vaccines will be valued in terms of the recovery time of the economy in general.

The Greenback and its friends

In this scenario of increased risk appetite, the US Dollar has continued to weaken today.

If this movement continues in these first days of the year, the Dollar's downward trend that began when the Federal Reserve decided to lower interest rates to historical lows would be reinforced.

And this weakness of the North American currency motivated by very accommodative monetary policies is the main reason for Gold to strengthen again and surpass the levels of $1900.

With today's bullish move, the precious metal has far exceeded the intermediate resistance of $1900 while also hovering above the 100-day SMA for the first time in two months.

Fundamentals are still in favor and technically heading towards a significant resistance at $1950, which, if exceeded, would pave the way to further gains in the area between $1990 and $2000.

Source: Bloomberg, Reuters

Uvedené informace zpracovala společnost CAPEX.com/cz a nepředstavují investiční doporučení. Uvedené informace poskytujeme v rámci naší marketingové komunikace pouze pro informační účely, nebyly připraveny v souladu s právními předpisy upravujícími šíření nezávislého investičního průzkumu a nevztahuje se na ně zákaz obchodování před šířením investičního výzkumu.Uživatelé / čtenáři by se neměli spoléhat výhradně na informace, které jsou zde prezentovány, a měli by také provádět vlastní výzkum / analýzu a také četli skutečný podkladový výzkum. Obsah je obecný a nezohledňuje individuální osobní situaci, investiční zkušenosti nebo současnou finanční situaci.Společnost Key Way Investments Ltd proto nebere žádnou odpovědnost za ztráty obchodování z důvodu použití a obsahu zde uvedených informací. Minulá výkonnost a předpovědi nejsou spolehlivým ukazatelem budoucích výsledků.

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books. 

Rozdílové smlouvy jsou komplexní nástroje a v důsledku použití finanční páky jsou spojeny s vysokým rizikem rychlého vzniku finanční ztráty. U 69.69% účtů retailových investorů došlo při obchodování s rozdílovými smlouvami u tohoto poskytovatele ke vzniku ztráty. Měli byste zvážit, zda rozumíte tomu, jak rozdílové smlouvy fungují, a zda si můžete dovolit vysoké riziko ztráty svých finančních prostředků.