The stock markets in Asia and Europe, along with the futures on North American indices, have experienced gains given the signs of reopening in the main world economies as well as some improvement in the evolution of the pandemic, especially in Europe.
Japan has ended the state of alarm, and in Spain and Italy shops, bars and in some cases schools have opened. The possibility of a second wave of infections is ruled out in the market, and the hopes of a vaccine are growing.
In short, a feeling of optimism among investors will have to be confirmed with economic data in the future, with an improvement in the spread curve of the disease.
For now, the tension between the United States and China has been set aside. Still, it should not be forgotten that there are issues pending resolution, such as the Chinese intervention in Hong Kong and the possible ban on the listing of Chinese companies in American stock markets, which could turn this optimistic sentiment around.
Yesterday was a holiday in Singapore, the United Kingdom, and the United States, business centers important enough for the activity to be practically non-existent. Liquidity was extremely low, and this was reflected in low volatility in most assets.
The Ifo Business Climate figures for Germany have been published with a better-than-expected number of 79.5 vs. 78.3, which has contributed to the outperformance of the European indices. Germany30 rose above 2% during the session.
USA500 has been trading at the highest levels in recent weeks, reaching the 2989 zone. Technically it has already overcome the 0.618 Fibonacci retracement and found a significant level of resistance at the 200 days SMA at 3007.
GOLD remains in a lateral consolidation range waiting to gain momentum, which will only occur outside the levels in which it has been locked in the last week between $1,720 and $1,740.
The most widely held opinion among market participants is that the precious metal will continue to be in demand both by institutional investors and even by sovereign funds and central banks, given the current conditions of money supply in the world. Gold could possibly have a bullish trend if risk aversion intensifies or if the economy recovers.
There has been no significant movement in the currency market due to the closure of the leading trading centers. Two essential figures are to be published in the United States: Consumer Confidence and New Home Sales that should contribute to more significant activity in the market, according to market analysts.