Sentiment Improves On Talk Of Reopening US Economy, Chinese GDP Shrugged Off
Fiona Cincotta April 17, 2020 8:02 AM
Talk from Trump of the reopening of the US economy, plus reports of a potential treatment for Covid-19 is boosting risk sentiment and overshadowing Chinese GDP data
European markets are set to jump on the open, as positive sentiment spills over from Asia. Talk from Trump of the reopening of the US economy, plus reports of a potential treatment for Covid-19 is boosting risk sentiment and overshadowing data showing that China experienced its deepest contraction on record in Q1.
At this stage, attention is naturally turning to vaccinations and treatments for Covid-19. Reports that a Gilead drug is producing encouraging results in clinical trials is also giving risk sentiment a lift. Any successful treatment drug would essentially mean that economies can reopen more quickly, good news for a rebound. Without this, any recovery is expected to be more drawn out – more like a Nike tick, rather than V or U formation.
Levels to watch
The Dax has jumped over 1% on the open. It remains above it ascending trend line in a bullish chart, after briefly dipping below earlier in the week.
Immediate resistance can be seen at 10830 (high 14th April) prior to 11040 (high 10th March) and 11530 (high 8th March)
Support can be seen at 10520 (trend line support) prior to 10150 and 9335.
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