Does Covid-19 threaten markets again?
Since the opening of the markets on Friday, a negative external background has developed. The general mood of the stock exchanges has deteriorated noticeably, and oil prices have dropped sharply, despite the fact that the day before there had been a positive trend.
Financial Markets Analyst Elena Kozhukhova reviewed what is happening in markets around the world. Following the discovery of a new strain of coronavirus, S&P 500 index futures have lost 1% since the opening of trading. Europe continues to correct after local minimums and the results of the Europe Central Bank meeting, where the prospect of a change in monetary policy and another rise in inflationary risks was announced.
This Friday on the Asian markets, the dynamics is also negative. First of all, this is due to unrest regarding the situation in which the world economy is located due to the returning threat of a worsening of the epidemiological situation.
Brent and WTI futures fell by 3 and 3.5%, respectively. It was not without the influence of the US decision to free up reserves, which means the emergence of a surplus. Oil quotes are moving towards the lows recorded in November, when they were $ 77.62 and $ 74.79. By the way, they are also influenced by the strengthening dollar.
As for the Moscow Exchange and the RTS, yesterday, which passed unchanged, left the indices below the levels that were important: 4000 and 1700 points. Fundamental factors are also deteriorating, which will most likely lead to the fact that on the weekend the indices will turn into another fall with support at 3900 and 1630 points.
Morning trading showed a weakening of the ruble against the euro and the dollar: 84.5 and 75 rubles were exceeded. During the session, the indices are likely to obtain negative value, a fall in the oil market is also possible.
The new Covid-19 strain and the subsequent ban on flights to the territory of its detection managed to create a stir in the stock markets. In order not to conclude on a sad note, Elena Kozhukhova notes that gold is returning to its role as a defensive asset, rising to $ 1,800 an ounce. It also leads to the fact that the shares of gold mining companies will also look very positive.