EU leaders agree on stimulus deal
After making progress on a deal yesterday, today it was confirmed that EU leaders have finally agreed to a historic coronavirus rescue deal.
The EU 27 agreed to the creation and distribution of a €750 billion recovery fund, to help rebuild the continent’s economy, after its worst financial hit since WWII.
More than half of the fund will be issued in the form of grants, and this news has boosted markets.
The DAX reached its highest level since February, and EURUSD reached its highest level since December 2018.
Gold passes $1,840 as indices also rise
The day also saw Gold rally to as high as $1,843, as bulls brought the metal to its highest point since 2011. Could a record high be on the cards?
In unusual circumstances the benchmark U.S. index S&P 500 also saw gains, meaning investors were not necessarily fleeing to safety in this latest gold move.
Gains in the S&P 500 were led by Coca-Cola which gained 3.2% after announcing a rise in demand for its products. The Dow also gained over 1% today.
Crude Oil hits 5 month high
Similar to Coca-Cola, Crude Oil also rallied by over 3% on optimism that a global recovery will boost oil demand.
Oil has mainly consolidated between $38-$40 per barrel in recent weeks, but finally broke out of this range today reaching a high of $42.34.
With the stimulus in place many of Europe’s most impacted nations will attempt to re-open industries such as travel and tourism, which took a big hit in recent months
Quote of the day: . “Learn to take losses. The most important thing in making money is not letting your losses get out of hand.”Martin Schwartz
XAUUSD: Gold reached its highest level since 2011 as the metal went on a $20 rally on Tuesday. Prepare to see this in tomorrow’s news cycle!
USDZAR: Led by the downwards cross of the 10 day and 25 day moving averages, USDZAR broke out of the 16.600 floor, going as low as 16.375.