The markets brace for Corona reality check – Market Analysis

The markets brace for Corona reality check – Market Analysis

Coronavirus vaccine approach the shelves as economic drawdown deepens

At a press conference in Washington yesterday, President Trump announced that a blood plasma-based treatment for the disease had shown positive results and that he had gotten the FDA to approve its use in patients as an emergency measure.

Although this treatment had already been considered by scientific researchers and had even been used in various cases around the world, the market's announcement has been positively taken as if it were something new.

The method is complicated since it requires the donation of plasma by those infected by the disease already recovered, and its effectiveness has not been scientifically proven. Therefore, it is just a desperate attempt by Trump to advance positions in the electoral polls that are still negative for him.

The positive reaction of the market is also due to the statements of Chinese and US officials in which they imply that trade negotiations are losing intensity in the open confrontation of recent days and that agreements may be reached to avoid bans on some companies from China with which the American government had previously threatened them.

In short, a continuous tug of war still does not have a clear outcome or solid fundamentals for investors to maintain a positive risk mood permanently.

The general market sentiment has a clear, optimistic bias. This is demonstrated by the fact that any positive news, no matter how little credibility it may have, is taken with some enthusiasm by market participants.

Global Equities

The massive amount of liquidity that governments and central banks have brought into the system is the main reason for this. Unlike other crises, this is not a financial or liquidity crisis, and global fund managers try to find the slightest opportunity to allocate this extra liquidity in the market.

In a tranquil session without any publication of relevant economic figures, most of the stock markets have experienced rises around 1%, highlighting Germany30 that has gained 2% on the day.


But still far from its resistance level in the 13277 area and with hourly RSI at an overbought level.


The US Dollar has weakened with the market's best risk mood at the start of today's session.

EUR/USD has rebounded to an intermediate resistance zone between 1.1830-50 but has failed to break above these levels and therefore remains within the downward correction movement that started early last week.


Le informazioni contenute nel presente documento sono redatte da Miguel A. Rodriguez e non costituiscono né devono essere interpretate come suggerimenti di investimento. Le informazioni di cui al presente documento costituiscono comunicazioni di marketing generali a scopo informativo e, in quanto tali, non sono state preparate nel rispetto dei requisiti di legge che promuovono le ricerche di investimento indipendenti. Inoltre, non sono soggette ad alcuna limitazione sulle transazioni condotte in anticipo rispetto alla divulgazione delle ricerche di investimento in questione.

Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante.

Key Way Investments Ltd non influenza né ha alcun input nella formulazione delle informazioni qui contenute. Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.

Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le performance passate non sono un indicatore affidabile dei risultati futuri.