Daily

Not as expected? !

2020-05-07

The market continues to look forward to a restart of the economy. The Dow Jones Industrial Average finished yesterday and Hong Kong stocks continued to rise yesterday.  The Hang Seng Index opened lower than 1 point and then rose up, up 366 points to 24,235 points and finally closed at 24,137.

U.S. announced private market jobs last night. The monthly data released by the American Institute for Automatic Data Processing (ADP) on Wednesday showed that private sector employment in the United States fell by 20,236,000 in April.

This figure was slightly lower than the market expected reduction of 20,050,000.  The shocking figures did not hit the stock market, with S&P rising 0.9% at the time of the announcement.

The market may have let the relief measures digest the bad news, and S&P closed down 0.7%.

On the other hand, President Trump was asked during his tour of the mask production plant whether he would restart the economy in full swing even if the epidemic brought about a high number of deaths. He would also disband the anti-epidemic expert consultants and did not give a positive answer.

He pointed out that unsealing may increase the number of infections or deaths, but we cannot wait two or three years.  This means that the United States has already had a better impact on the economy than on the city's health.

The relaxation or even lifting of all epidemic prevention measures in all states of the United States is expected to come soon.

With the restart of the global economy, the general optimism in the market has put pressure on the gold price.  But trump's loose password dollar index rose, with the dollar index rising 2% to 100.23, dragging down gold prices.

Gold fell through 1700 to a low of 1680.  However, gold is the beneficiary of central banks' widespread currency issuance to save the economy. It is also a tool to hedge inflation and currency devaluation. As long as the 1685 support is maintained, the central line is also promising.

Oil prices have also reacted negatively to market news. As the United States infected by the new virus has also issued a signal to restart its economy, the demand for crude oil should be increased.

However, investors' profits pushed oil prices down. Oil prices once fell below US$ 25 a barrel. However, oil prices did not seize the moment and will eventually reflect their actual value in their prices.

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