Tickmill : Weekly Market Outlook (27 April 2020)

Title : Weekly Market Outlook (27 April 2020)

Broker : Tickmill

Description : Asian stocks edged higher on low volume after S&P ended higher on Friday. Today’s focus will be on Japan’s central bank, which is expected to expand monetary stimulus for the second straight month to ease corporate funding strains and finance huge government spending. The central bank is said to follow suit to join the Fed and ECB to buy unlimited amounts of government bonds at an annual pace of 80 trillion yen ($744 billion) per year, according to sources. Further this week ahead, the Fed and ECB will also hold rate meetings where their attitude about the economy will draw the market’s attention.

The dollar went lower as risk aversion eased, benefiting from good news from the virus front. Market speculation is that the COVIC-19 might have peaked with the death toll slowing by the most in more than a month in Spain, Italy and France. Itay will ease its lockdown in just over a week, while New York also outlined its reopening plans. Meanwhile, in Australia, two states have eased COVIC-19 restrictions. These could bring back the risk-on sentiment and boost risk assets. Gold also went lower upon the bullish risk sentiment, but weaker USD could provide some near-term support for gold price.

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