By Deepta Bolaky
Investors are closely watching the reopening plans of major countries. In the US, more states have started to loosen virus lockdown restrictions to allow people to get back to work. Major equity benchmarks gapped higher on the open on Monday. Ahead of a busy week with major central banks’ decisions and earnings results, stocks rallied globally as the reopening of certain economies has now begun.
All three US equity benchmarks rose by 1% or more on hopes of improving economic activities:
In the FX space, major currencies were mixed against the US dollar. Amid a risk-on environment following the gradual reopening of certain economies, haven currencies like the Japanese Yen, Swiss franc and the US dollar struggled to find demand while commodity currencies like the Canadian and Australian dollar were among the best performers.
As the greenback retreated, the Aussie dollar rose higher and is now consolidating in the 0.64 level. The local currency is likely going to remain at the broader sentiment of the markets as the Aussie calendar is relatively empty at the beginning of the week.
Ahead of a busy economic calendar, traders are awaiting the central banks’ policy statements and the US GDP figures which will be released across the week.
In the oil market, the turmoil continues, mostly dragged by an SEC filing by one of the world’s largest oil fund – the United States Oil Fund (USO). The USO has revised its investment in oil futures contracts to concentrate on futures contracts that are further out, as per the following:
Crude oil prices remained under heavy selling pressure. Attention will now be on the weekly EIA and API reports for fresh trading impetus.
As risk sentiment improves, gold struggled to find buyers and retreated from recent highs. Even though certain economies or states are detailing plans to resume activities, uncertainties still prevail. The XAUUSD pair is also finding support on a weaker US dollar and is still trading above a key level of $1,700.
Jobs/Applicants Ratio, Unemployment Rate, BoJ Monetary Policy, Outlook Report and Press Conference (Japan)
ECB Bank Lending Survey (Eurozone)
S&P Case Shiller Home Price Indices, Richmond Fed Manufacturing Index and Consumer Confidence (US)
Alphabet Inc. (NASDAQ: GOOG, GOOGL) will hold its quarterly conference call to discuss first-quarter 2020 financial results on Tuesday, April 28, at 1:30 p.m. PT/4:30 p.m. ET.
PepsiCo, Inc. (NASDAQ: PEP) will issue its first-quarter 2020 (ended March 21) financial results and other related information on Tuesday, April 28, 2020. The press released will be at approximately 6:00 a.m. EDT and live question and answer session is scheduled at 8.15 a.m. EDT
Starbucks Corporation (Nasdaq: SBUX) will release its second-quarter fiscal year 2020 financial results after the market close on Tuesday, April 28, 2020, with a conference call (webcast)to follow at 2:00 p.m. PT.
Caterpillar Inc. (NYSE: CAT) will release first-quarter 2020 financial results at 5:30 a.m. CDT on Tuesday, April 28. A real-time, listen-only teleconference and webcast of the quarterly results call that Caterpillar conducts with security analysts and institutional investors will begin at 7:30 a.m. CDT on Tuesday, April 28.
3M (NYSE: MMM) will hold its first-quarter 2020 earnings conference call on Tuesday, April 28, 2020, at 8 a.m. CDT.
|Wednesday, 29 April 2020
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