Macro economics

Analytics on 22/06/2020. Stocks unbiased amid coronavirus concerns, oil prices stay afloat

European stocks opened lower but managed to erase earlier losses at the start of a new trading week. On the negative side, investors continue to monitor coronavirus developments following the news that cases are increasing rapidly in some countries including Germany. The U.S reported more than 30,000 new coronavirus cases on Friday and Saturday while in Germany, the reproduction rate of the disease has risen substantially.

Meanwhile, investors refrain from aggressive sell-off in risky assets as the global financial markets are supported by central banks’ stimulus measures and hopes of a rapid economic recovery from the pandemic crisis. In individual stocks, shares of Germany’s Wirecard continued to bleed on Monday, falling nearly 35% after the company reported earlier in the day that the $2.1 billion missing from its accounts probably does not exist. Against this backdrop, the UK’s FTSE 100 sheds just 0.02% to 6,291. Italy’s FTSE MIB edges lower by 0.36 percent to 19,548, France’s CAC 40 gains 0.14 percent to 4,986, while German DAX 30 rises by 0.07 percent to 12,340. U.S. stock index futures struggle for direction before the opening bell amid the lingering uncertainty related to coronavirus.

In currencies, EURUSD reversed part of recent losses and climbed above the 1.12 handle in recent trading. The pair was changing hands around 1.1215 at the time of writing, having settled in the positive territory after four days of losses seen last week. Still, the common currency is yet to confirm a local breakout on a daily closing basis as market sentiment looks unstable. On the downside, a break below 1.12 will shift market focus back to the 1.1170 region, where significant support arrives.

In commodities, Brent crude has settled marginally above the $42 handle but struggles to extend gains amid a cautious approach by investors. the $43 level now acts as the key immediate barrier for bulls while on the downside, the $40 figure continues to act as the main support in the short term. it looks like the futures will struggle to stage a more decisive ascent in the near term, as traders express concerns over the outlook for global energy demand amid the ongoing coronavirus crisis.

Nathan Lambert, Head of Global FX Analytical Department

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Interest rates

Country Rate Value
USA Federal Funds 0,25 %
Switzerland 3 Month LIBOR Range -0.75 %
United Kingdom Repo Rate 0,10 %
EU Refinancing Tender 0,00 %
Japan Overnight Call Rate -0,10 %
New Zealand Official Cash Rate 0,25 %
Australia Cash Rate 0,25 %
Canada Overnight Rate Target 0,25 %
All rates

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