Daily Fundamental Analysis | 5 May 2020

Daily Fundamental Analysis | MultiBank Group

Market Briefing

The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China row spat about the origins of the coronavirus outbreak, whilst major airlines dropped after Warren Buffets Berkshire Hathaway dumped its stake in the sector.
Hong Kong’s recession deepened in the first quarter as the corona virus dealt a heavy blow to business activity, already in decline following months of often violent anti-government protest last year. On an annual basis, the economy contracted 8.9%, compared with a revised 3.0% in the fourth quarter of 2019.
New orders for U.S.-made goods fell more than expected in March and could sink further as disruptions from the coronavirus fracture supply chains and depress exports. The Commerce Department said on Monday factory orders dropped 10.3%.
Over 20 per cent of employees in Britain have been furloughed with 8 billion pounds claimed form the government to sustain wages during the coronavirus lockdown.
EUR/USD extended its decline and briefly broke the $1.0900 level on Monday, as risk-aversion prevailed.
Oil was up 61 cents, closing the day at $20.39 per barrel, however the market could have trouble extending gains after an industry regulator for Texas declared “dead” a plan to cut output in the largest oil-producing state in the U.S.
Gold ended Monday stronger, as investors looked towards the safe-haven asset, following the renewed war of words between U.S. and China. Spot gold was up $6.45 on the day.

Today's News

Server Time HK Time Currency Description Expectation
07:30 12:30 AUD Cash Rate 0.25%
15:30 20:30 CAD Trade Balance --2.2B
17:00 22:00 USD ISM Non-Manufacturing PMI 37.5
- - EUR German Constitutional Court Ruling -


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