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Reliance Trading Co. Limited – What one must expect on this week's Market
It seems like the U.S. market is not getting any better this coming week as just this Sunday evening, oil futures tumbled down by 30% which made DJIA futures sink by 900 points
By: Reliance Trading Co Limited
It seems like the U.S. market is not getting any better this coming week as just this Sunday evening, oil futures tumbled down by 30% which made DJIA futures sink by 900 points. Not to mention that the yield on the 10-year U.S. Treasury bond plunged as low as 0.5% making another record blow to the stock market history.
The reason why the oil market is down by 30% is because the crude producing country has declined the production cutbacks that created a kicked off a price war and sent Brent futures drop to a $32 per barrel, which by the way they started this year with almost $65 per barrel. With the news, Oil giant Saudi Aramco plummets below its IPO price for the first time in the history.
Still affected by the fear and anxiety the growing number of coronavirus cases all around the world, the global market and the economic growth is now thwart by the circumstances covid-19 created. The locked down of most countries in some of their cities is making investors more uncertain to get back on investing.
Today, following the news about the U.S. Federal Reserve cutting down its interest rate by 50 basis points last week, investors are all eyes on the European Central Bank's (ECB) meeting this coming Thursday, which they are expecting a same scenario from the Federal Reserve. There will be a tension for a benchmark rate cut due to pandemic fear created by covid-19 which an added burden to a slow Eurozone Economy.
There are more uncertainties on the markets today, like Euro Stoxx 50 Index are down about 6% or Japan's Nikkei 225 dives more than 6% that will make newbie investors doubt their decision on entering this kind business. Though there are a lot like Global Equities and S&P500 who both have plunged deep after a correction last month as measured by the MSCI World Index, there are still some companies who are confident to report their passive earnings by next week. Two notable companies among them are Oracle and Dollar General which will report results on Thursday.
For more news about stock market and to know more about or products and services do visit us at https://www.reliancetradingco.com/
Reliance Trading Co. Limited