New week, new movements in the market!
As we head into a new, volatile trading week, we present to you the top three things to expect to drive market movements as we move into the 4th week of the Coronavirus lockdown:
- COVID-19 crisis: Investors will continue to monitor headlines surrounding the coronavirus crisis and how soon the drastic stay-at- home measures might finally come to an end.
There are now more than 350,000 confirmed cases in the United States, according to data from Johns Hopkins University.
The death toll in the U.S. continue to rise as well. The virus has now claimed the lives of more than 10,000 people.
Globally, there are now more than 1,300,000 confirmed cases with total deaths approaching 75,000.
Therefore, at this point, as long as lockdown measures are in effect for major countries around the world, the damage done to the global economy will only get worse in the weeks and months ahead.
It is something worth keeping our focus on in the week ahead.
- More volatility on Wall Street: Investors are bracing for more volatility and big market swings in the week ahead. Last week, stocks on Wall Street suffered a third weekly decline in a row, with the Dow Jones dropping about 3% and the S&P losing about 2%.
At this point, it is clear that markets at some point later this month will take out their lows seen in March. A lot of Wall Street analysts expect to see more selling and more bearish drops in the coming week.
Has a bottom low been established for Wall Street already? We can only find out in the coming weeks.
- Oil market crisis continues: In what will be a big week for oil, OPEC and Russia have announced they will postpone their emergency meeting that was scheduled to be held today.
The duo was expected to discuss oil output cuts after an agreement between Russia and Saudi Arabia. The discussion is now scheduled to take place on Thursday, the 9th April. The rescheduling of this meeting will allow more time for negotiations.
This setup comes after oil prices enjoyed their largest one week gain on record. WTI prices soared by almost 32% after Trump tweeted about a possible agreement between Russia and Saudi Arabia.
The fallout over the weekend has numbed the possibilities, and we’re expecting a possible sharp decline in the futures market. It shouldn’t be at all surprising to see a drop of over 10%.
Other things you might want to look out for include the latest FED minutes and the latest U.S. jobless claims.
The Fed has, over the last week, stepped in to provide liquidity to a rapidly declining U.S. economy. Hopefully, there might be something in the Fed minutes that will shed more light on the Fed’s thinking. The release of the minutes is scheduled for Wednesday.
The jobless claims will be released on Thursday this week. Last Thursday’s report revealed that 6,600,000 new filings were made for claims benefits. More than 4,000,000 were seen in the week before, and the numbers might continue to rise over the coming weeks.
Lastly, we do hope you know that we have a 4-day trading week this week. Markets will be closed on Friday due to Good Friday, so the action on the market this week is expected to last till only Thursday.