Asian stocks set to rise as all eyes look towards China’s GDP data release
Asian stocks look set to climb today to recover towards a one-month high as investors remained optimistic over a run of data that showed the world is in its worst recession in decades.
Although any gains could well be capped in early trade as investors stay on the sidelines before a spate of Chinese data, due today, that will likely show the world’s second largest economy shrinking for the first time on record between January and March. A Recent poll has shown China’s economy is forecast to have shrunk a sizable 6.5% in the first quarter from last year.
E-Mini futures for the S&P 500 index rose right from the closing bell and jumped 3.5% to a five-week high, while the Nikkei futures pointed to gains of 545 points.
U.S. stock indices had stretched out gains overnight in a session of turbulent trade, after shares of Amazon and Netflix both surged to record highs, as sweeping stay-home orders by governments to fight the coronavirus pandemic drove demand for online commerce and streaming services.
However, Data released overnight has shown a record 22 million Americans filing for unemployment benefits over the past month, though some investors have taken heart in the fact that claims have fallen for the second week running.
Netflix & amazon have seen shares surge during the covid-19 period
It has been widely speculated that economic recovery may be slow.
“Some believe when the crisis is over, everything will quickly return to what life was like in January, but I think there will be some lingering effects,” one senior asset manager has stated.
Across Europe some countries are now beginning to restart their economies and joining them are the United States with President Trump allowing state governors to allow businesses to reopen in a staggered , 3-stage process.
Currencies, gold & oil overview
The demand for safety helped the Dollar index rise 0.3% to a one-week high of 99.954, while the Euro recovered from a low of $1.0832 struck overnight to be up 0.18% at $1.0854. The Dollar changed little against the Japanese Yen at 107.95 yen.
A firmer dollar led gold prices to slip further from 7–1/2-year highs hit earlier in the week. Spot gold fell 0.6% to $1,707.50, while U.S. gold futures slipped 0.3% to $1,725.9.
Oil prices steadied a little after hovering at an 18-year low overnight on fears that energy demand will collapse on the back of a global recession. U.S. crude edged up 0.65% to $20, while Brent crude was flat at $27.82.
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