Categories: Agenda

5 Important Developments You Should Know on the Markets on Tuesday

Author: Geoffrey Smith

Investing. com – The Senate will hold a session on the health consequences of the re-opening of the economy, and Anthony Fauci will head the testimony. While Elon Musk reopens the Tesla (NASDAQ: TSLA) facility in the gulf area, it encourages Alameda district officials to arrest itself. Global markets remain nervous among the signs that the outbreak has reappeared. The dollar strengthened as Fed officials removed the prospect of negative interest. Oil prices continue to recover from the 1.2 million barrels of additional production cuts by Gulf producers, especially Saudi Arabia.

What you should know in the financial markets on Tuesday, May 12:

1. Senate to hold session on reopening

The Senate will hear statements from senior health officials, including the country’s senior expert on infectious diseases, Anthony Fauci, on the results of the reopening of the US economy.

The session will be held by teleconferencing after contact with infected people, as both witnesses and senators are in individual isolation.

At a press conference on Monday, President Donald Trump said, “We have prevailed” by increasing the number of tests.

2. Global markets remain nervous with a mini epidemic flame

Global markets are in a cautious mode, with fear of the possibility of a second wave of infections following a new wave of cases in South Korea in connection with a nightclub in Seoul, with five new cases in Wuhan, China.

In addition, Germany’s Robert-Koch Institute said on Sunday that the rate of virus re-spread was above 1 after quarantines were stretched. the said rate dropped to 0.65 last week, but again rose due to the increase in cases in slaughterhouses and nursing homes.

On the other hand, Russian President Vladimir Putin lifted the national quarantine, despite the new infection rate remaining over 10,000 on the tenth day. Quarantine caused Putin’s approval rating to drop to the worst level in the decade after exposing weaknesses in the country’s healthcare system and social security network.

3. Exchanges will be opened a little high; CPI, Fed talks expected

US stock markets will open high with increasing comments about the recovery in April.

Dow Jones 30 dropped 57 points, while the S&P 500 and Nasdaq 100 contracts experienced similar increases. The three indices were mixed on Monday.

On the other hand, the dollar strengthens after three top Fed officials neglect the possibility of interest rates below zero next year. Atlanta Fed President Raphael Bostic said negative rates were “the weakest tools in the toolbox”, while Charles Evans said he did not think these tools would be used. It seems that April CPI data, which will be published today, will not be able to change the views of the authorities.

St. Fed talks, which will begin with Louis and Minnesota Fed Presidents James Bullard and Neel Kashkari, will continue with Patrick Harker from Philadelphia and senior banking supervisor Randall Quarles.

In addition, the Fed will start buying bonds and mutual funds today.

4. Musk Tesla reopens its facility

Elon Musk reopens its facility in Fremont, giving Gulf Region officials trump card to arrest him.

Tesla founder has recently expressed his frustration at the closure of the Fremont plant, since Alameda County has kept the factory closed, despite restrictions on state-wide production. Governor Gavin Newsom said he would submit to county officials.

Prior to this development, Tesla shares saw the highest level of two months last week with the support of the hopes that the US and European economies will recover and sales will recover.

5. Oil gains momentum after additional production cuts led by the Saudis

Oil prices continued to rise after Saudi Arabia, Kuwait and the UAE announced additional production cuts Monday.

As of June 1, 1.18 million barrels a day will withdraw from the markets, and will accelerate the rebalancing process of the market, which has been hurt by an unprecedented decrease in demand. Saudi Arabia will cut 1 million barrels a day, UAE 100,000 and Kuwait 80,000 barrels.

Meanwhile, BP (NYSE: BP) CEO Bernard Looney said that the pandemic’s global oil demand could reveal the peak date. Looney said he expects the impact on fuel demand to be long-term and permanent in some respects.

US crude oil rose 5.4% to $ 25.45, while Brent traded at $ 30.54, up 3.1%. The American Petroleum Institute will present its weekly report on US oil supply at its usual time.

MulierLife

Leave a Comment
Share
Published by
MulierLife

Recent Posts

Alex Baxter was mocked on social media

Australian model Alex Baxter climbed onto the lakeside cliff for the sake of posing. The…

10 mins ago

Alexis Sharkey found dead and naked

The social media phenomenon Alexis Sharkey, who has been sought as missing for days, was…

17 mins ago

Russian model Lilia Sudakova killed her husband

The famous model stabbed her husband, who came home with another woman, in the heart.…

32 mins ago

Jennifer Lopez is totally sexy but zero botox

The apparently imperishable whiz Jennifer Lopez discloses that preceding the dispatch of her JLo Beauty…

39 mins ago

2020 will be one of the three hottest years ever

The World Meteorological Organization (WMO) expects 2020 to be recorded as one of the hottest…

51 mins ago

Jon Rose Embraces His Origins For A Better World With Two Californians

Dockers® starts a 3-year collaboration with the founder of Waves for Water, Jon Rose. In…

60 mins ago