Equity Markets Tumble And Tension Surging
Wall Street finished last week on a very sour note as the major U.S exchanges closed with their worst weekly performance since 2016. Nervous trading sentiment is being felt globally. Growth numbers will come from the U.S on Wednesday via the Gross Domestic Product outcome. Forex has been stable, but Gold surged in value as escalating fears helped the precious metal.
Worst Week of Trading for Wall Street since 2016, Healthy Correction?
Wall Street suffered its worst week of trading since 2016. The massive and sustained losses on the three major U.S Indexes have created introspection among investors. Wall Street began Friday with relative calm, but as the day grew selling became abundant. Global markets have been shaken and investors will enter tomorrow’s trading feeling skittish. GDP numbers will come from the States on Wednesday, and market participants should bear in mind markets will essentially trade only four days in Europe and North America because of the Good Friday holiday. Worries about trade conflicts between the U.S and China have not helped sentiment, but the current market selloff maybe part of a healthy correction many investors believed would occur after the huge gains on the broad markets the past year. A long term perspective is a good medicine at this juncture.
Forex Stable for the Moment, U.S Growth Numbers Could Cause an Effect
Forex has reacted calmly to the gyrations in global equities. The Euro and Pound have maintained their stronger stance versus the U.S Dollar and come into this week looking rather vigorous. Growth numbers from the States on Wednesday could impact forex. The Gross Domestic Product estimate calls for a gain of 2.7%. However, it global equities continue to suffer early this week inevitably a knock on effect will take place in forex. Traders should keep their eyes on the equity markets and bonds as a barometer. The Yen has been very strong against the U.S Dollar and this is a reflection of risk adverse momentum in Asia and the political saga which is engulfing Prime Minister Abe.
Escalating Fears Help Gold, Fear Factor Helping Precious Metal Short Term
Investors reacted to the escalating fears in the global equity markets on Friday by responding with another round of buying in Gold. The commodity will start Monday’s trading near 1347.00 U.S Dollars an ounce. The precious metal has proven to have tough resistance near 1355.00 mid-term, but should the fear factor increase in the broad markets speculators will certainly stay active.
Growth Numbers from the States, Manufacturing Statistics from China
The U.K will release High Street Lending figures on Monday at 8:30 GMT. Tuesday will see Consumer Confidence numbers from the U.S at 14:00 GMT. Gross Domestic Product data will be issued in the States at 12:30 GMT on Wednesday. Thursday will see Current Account statistics from the U.K at 8:30 GMT. France will release Preliminary Consumer Price Index marks at 6:45 GMT on Friday. And closing the week late will be China’s Manufacturing Purchasing Managers Index outcome early on Saturday at 1:00 GMT.