Thursday review: 19.03.2020

Oil prices went up yesterday after the Trump administration said it was buying 77 millions of American-sources oil to fill up the nation's emergency reserves and to support an industry damaged by the Coronavirus crisis and ill-timed production hikes by Saudi Arabia.

Crude Oil rose 17.9% yesterday, to $24.56 per barrel, and Brent Oil went up 7.7% to $26.80 per barrel.

Gold is trying to recover some ground. Some improvements were seen yesterday when it rose 0.55% to $1, 489 per ounce.

Things were looking for indices also. USA30 rose 0.95% after falling to its worst in three years a day earlier. USA500 rose 0.6% and TECH100 went up 2.30%.

Even though airlines pledged for loans and tax relief to survive, things are still going down:

Major hotel chains are temporarily closing properties and seeing occupancy rates tumble as travelers stay at home during the Coronavirus outbreak. Global hospitality research company STR said hotel occupancy was down 24.4% to 53% year-over-year. Meanwhile, revenue per available room, a key industry metric, fell 32.5% to $63.74. One of the biggest hotel chains in the world, Hilton, is talking through the logistics of closing the hotels to the public so that rooms can be given to vulnerable groups that are at risk of contracting the virus in the coming months.

The loss of 4 million jobs is based on a forecasted 30% decline in hotel occupancy rates and could result in a $300 billion hit to the GDP, a study by Oxford Economics produced in partnership with the American Hotel & Lodging Association concluded.

The Bank of England decided to cut rates to a historic level of 0.1% at a special meeting held on Thursday. It also announced it would buy an additional £200bn of U.K government and corporate bonds to help the country deal with the Coronavirus impact on the economy.

The emergency meeting came less than a week before the MPC’s next official scheduled meeting on Wednesday, March 25.


Sources: investing.com, marketwatch.com, theguardian.com, businessinsider.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.