After a day marked by one of the biggest falls ever on the European and American stock exchanges (it was the biggest ever in Europe), Friday was marked by a visible recovery. The reason behind this recovery was the good news about the response from various regions to minimize the effect of the coronavirus in their economies. The United States declared a national emergency and Germany revealed that there is no budget limit to fight this pandemic - there will be no restrictions on the zero-deficit rule.
In the stock market, it was possible to observe the Stoxx 600 valuing 1.43%. In the United States, the S&P 500 gained 9.29% while Dow Jones appreciated by 9.36% and the Nasdaq closed up to 9.35%.
In the debt market, however, the trend was of an increase in yields as the day was marked by a greater appetite for risk and concern regarding the spread of the virus.
The European currency again lost value against the Dollar, as the WHO declared Europe as the new epicenter of the epidemic and Donald Trump declared a state of national emergency.
With regards to oil, the day ended with its value increasing in the worst week since 2008. This effect was due to the good news that had emerged.
Gold, in turn, depreciated by 2.72% and this was the trend throughout the week with investors selling the asset in order to be able to support losses in the capital market. Also, the appreciation of the Dollar lead investors to seek less safe heaven assets.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.