Market Outlook
9 million confirmed cases! Will risk-off sentiment dominate?

ZFX: 9 million confirmed cases! Risk-off sentiment dominate?

22-06-2020 04:35

Market sentiment improved on Friday earlier session as the investors believed that the China-US tension eased after the closed-door meeting in Hawaii. It is reported that China will accelerate the purchases of the US agricultural products, which boosted the Wall Street. However, the risk of the second wave of coronavirus pandemic sparked the fears. Three major indexes lost all the gains in the late session.

Trump once again threatened that the US can completely cut ties with China, showing that the China-US relation remains uncertain.

Dollar and gold gained as investors sought safe-haven. The dollar index reached a high of 97.74 last Friday and the spot gold broke the $1740 level. 9 million coronavirus cases intensified the concern of the global economic recovery.

One the other hand, the EU leaders and the ECB President Lagarde held a video conference last week. However, the EU leaders failed to reach a consensus on the establishment of the 750 billion euro recovery fund after the meeting. Lagarde warned that, Europe is now experiencing a severe recession. She urged the EU to pass the recovery fund as soon as possible.

ZFX analyst Jacob Leung said that the breakthrough of the gold price implied the risk-off mode. The renewed pandemic may keep the market sentiment bearish. Investors will also be very cautious about the China-US tension and stick to risk management.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.