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Market Outlook
ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing - Zeal Capital Market

ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing

07-04-2020 02:56

Review:

On Monday (April 6), the market sentiment improved significantly, as the data shows that the trend of the pandemic in Europe and the US is slowing down, boosting the investor confidence. Risky assets were benefited due to the risk appetite, and the three Wall Street indexes all rose 7%.

At the beginning of Monday's opening, US President Trump said that seeing signs of the coronavirus outbreak in the United States has begun to level off. Market sentiment turned much better and the stock markets in the Asia-Pacific region were generally good. The uptrend was finally maintained in the US trading session.

According to the latest information, more than 1.3 million cases have been confirmed in more than 200 countries around the world, and more than 70000 people have died. However, the figures also show that the increase of the confirmed cases and deaths has slowed down, meaning that the pandemic situation may become stable.

ZFX analyst Jacob Leung said that although the number will keep rising at least in the near future, the market view is that the worst scenario may have passed, and the timing was earlier than the market expected, which can definitely boost the confidence. Furthermore, there was no important figures releasing these days in the US, which also brings "room" for the upward move.

However, it is still doubtful whether such positive sentiment can be maintained or not in the coming days. Even though the peak of the global pandemic may have passed, it does not mean that the overall situation has greatly improved, nor the global economy can quickly get rid of the severe recession. IMF has warned that the global economic recession will be more severe than the one during the 2008 financial tsunami. In addition, the market will keep monitoring the oil prices this week as it is still an unknown factor whether the OPEC+ can reach a consensus for the production cuts.

ZFX analyst Jacob Leung said that even if the pandemic can smoothly come to an end, the whole investment market will still need to be alert the subsequent impacts. Excluding the extraordinary bad figures showed in the future, it should be cautious that the current global economy is actually supported by a number of bailout measures earlier. The " side effects " would be likely to have more to come.

 

 

AUD/USD

ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing - Zeal Capital Market

Market theme / sentiment: As the market conditions improve, the Australian dollar will be benefited.

Support: 0.6080; 0.6050 Resistance: 0.6140; 0.6180

Recommendation: go long 0.6070, target 0.6100, stop loss 0.6040. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 0.5990 short, target 0.5970, stop loss 0.6010. (Cancelled) 0.5970 long, target 0.5990, stop loss 0.5940. (Cancelled) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 555 pips

 

 

EUR/USD

ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing - Zeal Capital Market

Market theme / sentiment: The euro is ranging at a low level, not much reaction to the market news.

Support: 1.0770; 1.0700 Resistance: 1.0830; 1.0880

Recommendation: Go long 1.0840, target 1.0870, stop loss 1.0800. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.0870 short, target 1.0840, stop loss 1.0900. (Cancelled) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 320 pips

 

 

GBP/USD

ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing - Zeal Capital Market

Market theme / sentiment: The British Prime Minister's condition is getting worse, the pound is fluctuating.

Support: 1.2200; 1.2160 Resistance: 1.2300; 1.2400

Recommendation: 1.2220 short, target 1.2170, stop loss 1.2250. Go long at 1.2330, target 1.2390, and stop loss at 1.2270. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.2270 has been short, and the stop loss is 1.2290. (Stop Loss) 1.2320 has been short and hit the target of 1.2290. (TP) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 330 pips

 

GOLD

ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing - Zeal Capital Market

Market theme / sentiment: Hot money are released under the risk appetite, benefited the gold price.

Support: 1650; 1630 resistance: 1670; 1680

Recommendation: 1665 short, target 1655, stop loss 1672. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1615 long, target 1622, stop loss 1606. (Cancelled) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: -72 USD

USOIL(美国原油)

ZFX: US stock market jumped over 7%!  Signs of the pandemic slowing - Zeal Capital Market

Market theme / sentiment: Waiting for news of production cuts, oil prices are consolidating.

Support: 28.50; 27.00 Resistance: 30.00; 30.30

Recommendations: At present, there is a big difference in OTC quotes, no recommendations are made.

Position follow-up and profit and loss: —

Cumulative profit and loss: $ 9.8

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 conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.