Virus Data Gets Better In Europe While New York Sees Some Light At The End Of The Tunnel
S&P 500 futures are gaining more than 3% in premarket trading as investors express optimism that the situation on the coronavirus front will start to stabilize.
According to data from Johns Hopkins University, there are 337,933 coronavirus cases in U.S., 135,032 cases in Spain, 128,948 cases in Italy, 100,132 cases in Germany and 93,780 cases in France.
The situation in Italy and Spain, which are the most hit among European countries, has shown signs of stabilization in recent days. While it’s too early to proclaim victory over the virus, Spain expects to roll out a wider coronavirus test program which should allow it to gradually lift virus containment measures.
In Germany, the government expects to start returning to normal life after April 19, 2020, when the current lockdown measures are scheduled to end. Even Italy, where the virus was especially deadly, sees some light at the end of the tunnel.
In the U.S., New York has finally shown some signs of stabilization but further data is required to confirm the positive trend. Investors got used to the fact that the situation on the virus front got worse day by day so the market is currently gaining ground on hopes that the current nightmare will end in April.
Interestingly, the U.S. dollar, which has served as safe haven asset of last resort, is gaining ground against a broad basket of currencies, so there are investors who do not believe that the worst part of the crisis is over.
Oil Production Cut Deal In The Works
In addition to virus data, the potential oil production cut deal is very important for the near-term direction of the market.
Oil prices have shown great volatility as the meeting between OPEC+ countries got postponed until April 9, 2020 but Russia indicated that the major oil producers were close to a deal.
It remains to be seen whether the U.S. will openly participate in the production cut deal. If the U.S. manages to push Saudi Arabia, Russia and other countries to cut production but does not participate in the deal, the U.S. shale companies will get a free ride, and their stocks will get a boost.
This article was originally posted on FX Empire
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