Which factor will drive the equity markets in the coming days and weeks? Liquidity (provided by the Fed, but now also by China’s central bank) or the visible, severe slump in the global economy? With China’s central bank, the “monetary factor” has recently been joined by an important player. While the Fed has recently reduced its money supply in bond purchases and the repo market somewhat. Which factor will win? The fundamental (weakening of the economy) or the monetary factor? The decisive factor for the global economy is when China can end the economic standstill caused by the corona virus. Today the focus is on US employment data and German industrial production (after yesterday’s collapse in German industrial orders).
Currently, a large Risk Off-Risk On Trade is underway. Back and forth. Gold price, Swiss Franc, Dax and Dow we want to have a look at now. Risk Off means that investors flee from stocks […]
The oil price continues to fall. Yesterday there were reports of alleged attacks by the Houthis on oil facilities in Saudi Arabia. But this news could only send the oil price up about 50 cents […]
The corona virus is currently the decisive factor for the global economy, and thus also for the financial markets. Especially for the oil price and in a broader sense also for US President Trump. He […]