Despite hopes that the COVID 19 epidemic appears to be plateau-ing in Europe, investors remain nervous. According to the latest data, more than 1.43 million people have been diagnosed globally, including more than 400,000 in the United States. Overnight, U.S. stocks briefly posted their biggest intraday gain since October 2008, but a 9% slide in oil prices dragged them down. The recent volatility in oil prices triggered a major market shock as investors focused on the April 9 OPEC + emergency meeting. Spot gold continued to decouple from futures, with the rally now stalled at the 1700 level, focusing on the dollar. Also on the agenda for the day is the fed minutes.
More than 400,000 people have been confirmed in the United States
As of 09:20 Beijing time on April 8, the global total of confirmed COVID 19 cases had exceeded 1.43 million, with 1,430,590 confirmed cases and 82,025 deaths and more than 80,000 deaths, according to real-time data update website world meters.
More than 400,000 cases were confirmed in the United States, totaling 400,335 cases and 12,841 deaths. New York, the worst-hit city, has more confirmed cases than Italy.
U.S. President Donald Trump held a regular news conference at the White House on April 7, saying the nation is starting to see hope despite a very painful week. He also noted that 110,000 ventilators could be supplied in the coming weeks.
Trump said the state has 8,675 ventilators on hand and that more than one ventilator will be delivered in the coming weeks. He said companies such as general motors have also joined the production of very high quality ventilators.
Separately, Mr. Trump said he would consider suspending funding to the world health organization to express his dissatisfaction with the organization’s handling of the novel coronavirus.
“It’s not good when they [the who] get everything wrong,” trump said, saying the who missed the boat on the virus. “they could have made a judgment months ago.”
Since the outbreak began in the United States, Mr. Trump has been a relentless critic of his response, most often citing his ban at the end of January on foreigners who had visited China in the past 14 days and his 14day quarantine of Americans returning from hubei province. While that approach has not stopped the virus from spreading in the United States, Mr. Trump has always thought he was wise.
According to the latest news, the US President Donald trump has said he will keep an eye on funding for the world health organization.
‘we will restart economic activity as soon as possible,’ Mr. Trump said. Began to think very seriously about reopening the economy. Indian prime minister narendra modi has been asked to lift restrictions on drug exports.
Mr Trump said he would be happy to restart the economy now, but some places have been hit hard by the outbreak.
Oil prices have gone through the roof! Gold is pegged to the dollar
Crude oil prices tumbled on Tuesday, with a more than 9 percent drop in U.S. crude weighing on Wall Street, wiping out the s&p 500’s biggest intraday gain since October 2008. Early Wednesday, however, WTI crude rose more than 6 percent at one point, according to Reuters quotes.
U.S. crude and gasoline stocks surged last week and distillate stocks fell, data from the American petroleum institute showed on Tuesday. U.S. crude inventories jumped 11.9 million barrels to 473.8 million barrels in the week ended April 3, compared with analysts’ expectations of a 9.3 million barrel increase.
U.S. crude futures fell $2.45, or 9.4 percent, to settle at $23.63 a barrel, with losses accelerating late in the day, hit by rising oil supplies and weak fuel demand due to the coronavirus pandemic.
“I can’t think of any bullish way or scenario,” said Bob Yawger, head of energy futures at mizuho bank.
U.S. stocks ended slightly lower on Tuesday as a late-day drop in oil prices intensified, erasing gains made earlier on early signs of a possible slowdown in some of the hardest hit areas.
By the close, the dow Jones industrial average was down 26.13 points, or 0.12%, at 22,653.86. The s&p 500 fell 4.27 points, or 0.16 percent, to 2,659.41, while the nasdaq fell 25.98 points, or 0.33 percent, to 7,887.26.
The market is now focused on the OPEC + emergency meeting in Vienna on April 9 at 16:00 local time (22:00 Beijing time), Russia confirmed to attend, OPEC + also invited an additional seven countries to attend the emergency meeting, including Brazil and Norway, but excluding the United States and Canada.
On Tuesday, OPEC delegates said they were considering cutting output by 10 million barrels per solstice by the end of the year, but not cutting output was also on the table. OPEC representatives also said Saudi Arabia and Russia were close to a deal to cut production. At the same time, however, sources said Russia and Saudi Arabia have yet to agree on a production cut and everything will be decided at the April 9 OPEC + meeting.
An OPEC source said on Tuesday that the final cut agreed by OPEC and its Allies on Thursday would depend on how much other producers, including the United States, Canada and Brazil, were willing to cut.
US President Donald trump has said he has held talks with Russian President vladimir putin and the crown prince of Saudi Arabia about the oil market, according to the latest market news. He thinks the oil market and the economy will be solved.
While the sharp drop in oil prices hit Wall Street, gold prices fell, falling as much as 1 percent to below 1,650 a day earlier. In Asian trading on Wednesday, gold was back above $1,650, with the focus on the fed’s minutes late in the day.
Bart Melek, head of commodities strategy at td securities, said: “what we’re seeing in equities is more of a stabilisation as the [outbreak] Numbers are peaking in parts of the us. “What all of this really tells us is that the epidemic may be over, but the world is by no means a well-run place, and it is by no means a place to take risks.”
He added that expectations of more stimulus and lower interest rates in the long term would continue to support gold prices.
TD Securities says the gold market’s multi-year rally is being consolidated as the market is flooded with monetary and fiscal stimulus and interest rates remain around zero.
Citibank says it expects gold to reach $1,700 an ounce in the next one to three months and $1,900 in the next six to 12 months.
Phillip Streible, the chief market strategist at Blue Line Futures in New York, said the massive sell-off seen in March, when financial markets saw extreme volatility and central Banks and governments had a lot of easing or stimulus programs, is over. “Those who are hoarding toilet paper will turn to gold, and it will only be a matter of time before the price rises above $1,700 an ounce, with a big rally after short positions are forced to be liquidated.”