The positive week for stock markets | 12 April 2019

The positive week for stock markets


#DAX30:


Fearing a sharp slowdown in economic growth, the EСB reversed course last month, delaying a planned interest rate hike until 2020. The Central Bank understands the need to stimulate the economy. If there are no new incentives, the likelihood of an economic downturn in Italy, Spain, Portugal and other countries increases. The poll showed the ECB is expected to lift interest rates later next year, but inflation was forecast to remain below the Bank's target of just under 2 percent for at least the next three years. Investors like the stimulation of the economy by Central Banks and in such periods they buy shares more actively.


Trading recommendation: Buy 11940 and take profit 12090.


The positive week for stock markets


BRENT:


Geopolitical tensions in Libya and Venezuela have a positive impact on oil prices, which update the five-month high. Investors are worried about the reduction of oil from Libya, as there began a civil war. The cost of oil is now at the psychological level of $ 70 per barrel. This price level suits Saudi Arabia. The positive outcome of trade negotiations between the USA and China has a positive impact on oil prices. Investors expect an increase in demand for oil and petroleum products in the coming months. I recommend buying “black gold”.


Trading recommendation: Buy 69.50 and take profit 71.65.


The positive week for stock markets


#SP500:


Positive macroeconomic statistics from the United States on the labor market will have a positive impact on the stock market. Nonfarm payrolls rose by 196,000 in March, while the jobless rate held steady as expected at 3.8%. Donald Trump said the U.S. Federal Reserve should lower interest rates and take other unconventional measures to ease pressure on an economy that he said they slowed down. Trump said he would nominate Stephen Moore on the Fed's board. Moore is also a longtime Trump ally who has joined him in criticizing last year's rate hikes. The USA President continues to put pressure on the FOMC. This is a good signal for the stock market!


Trading recommendation: Buy 2875 and take profit 2915.

 

David Johnson
Analyst of «FreshForex» company
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