Fears of contagion coronavirus | 07 Febrero 2020

XAUUSD:

We are expecting an uptrend to develop. Investors are increasing their long positions in the precious metals market. China’s coronavirus epidemic drove more buying in the yellow metal. China reported more than 260 deaths and 11,000 infections from the coronavirus. The spot gold, which tracks live trades in bullion, was up strongly, rising $15, or nearly 1%, to $1,589.63 per ounce. That gave bullion a gain of nearly 5% for January, also the best performance in five months. The White House on Friday declared the coronavirus a public health emergency in the United States and warned that people who pose a risk of transmitting the disease will temporarily be suspended from entry into the U.S.

Trading recommendation: Buy 1572 and take profit 1579

#SP500:

Positive macroeconomic statistics from the United States will have a positive impact on the stock market. U.S. consumer spending rose steadily in December. For all of 2019, consumer spending increased 4.0%. This is a positive signal for the U.S. economy. Fed Chairman Jerome Powell in the press conference that followed the statement said the central bank expects that the pace of bill purchases will continue until reserves reach an ample level, expected sometime in the second quarter. This factor will provide additional support to the stock market.

Trading recommendation: Buy 3231 and take profit 3274

#WTI:

Good and bad news for the oil market. Oil prices had their worst monthly loss in more than a year, as top buyer China remained virtually crippled by the coronavirus crisis. The rapid spread of the virus has triggered recession fears as the impact on China's already slowing economy could spill over into the global economy. This is a negative signal for the oil market. Russia Energy Minister Alexander Novak was agreeable to the plan by Saudi Arabia and others in the OPEC+ group to bring forward to next month their scheduled meeting in March, in an attempt to put a floor under the market. This is a positive signal for the oil market.

Trading recommendation: range 50.50 -53.00