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29.06.2020 11:22|Forex conotoxia.com

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Stock markets in Europe seem to be showning weakness since the beginning of the session on Monday even though the opening was higher. One of the main factors for this may be an increase in fears of a second wave of COVID-19 infections.

The number of confirmed cases has exceeded 10 million worldwide, and in total over half a million people have already died. In the United States, Australia or Brazil there is still a sudden increase in the number of cases. In the USA, the greatest concern is the situation in the state of Texas, which is currently considered a new outbreak of coronavirus. Meanwhile, in Europe, investors are still waiting for the final list of countries where EU citizens will be able to travel. On Friday, EU officials did not manage to finally approve such a list.

In the United States, on the other hand, futures contracts for the indices indicate the possibility of opening without major changes. Important data to be published this week include the ISM PMI and NFP (non-farm payrolls). Additionally, the President of the Fed, Jerome Powell, will have his speech on Tuesday. As a consequence of the spreading epidemic, many US states are already withdrawing their reopening. California will close bars in seven counties, including LA, and the governor of Arkansas said the state has slowed down the reopening process. Last week in Texas, Florida, and Arizona, plans to reopen the economy to reduce the epidemic were already halted.

The beginning of the week also brought a fall in oil prices of about 2 percent. This also appears to be a consequence of the increased threat of reclosure of some economies due to the epidemic or the partial re-restrictions. Meanwhile, US oil stocks continued to reach high levels, despite efforts by OPEC + to reduce production.

In the meantime, the British pound is trying to stop the depreciation against the USD after UK Prime Minister Boris Johnson promised that the government would spend large sums on hospitals, schools and roads when the country emerges from the crisis that plunged and led to the worst recession in three centuries, Bloomberg said. The GBP/USD exchange rate is trying to stay in the 1.2340 area in the morning.


Daniel Kostecki, Chief Analyst Conotoxia Ltd.

Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.

66% 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.


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