Expert: Stock markets in April will be a fever
World markets in April, most likely, will be a fever. In global terms, investors fear the slowdown in the global economy, which of course reduces their interest in risky assets.
The slowing of the world economy shows coming out in recent economic statistics on the U.S. economy and Europe. In addition, about the poor prospects say many authoritative organizations and financial regulators in individual countries, which worsen the forecasts for 2019 and 2020.
However, this does not prevent the participants of the financial markets to use market drivers in their trading strategies. So, one of the traders working in Forex Club, have used negative predictions to make several successful trades, which brought him a profit of about 0.5 million dollars for the March. The profit obtained, on the one hand, the traditional monetary instruments, and on the other by hedging in such assets as precious metals.
A significant contribution to this situation brings still never resolved a trade conflict between the US and China. Despite the fact that the parties are trying to find consensus, while several rounds of meetings and failed to sign the final trade agreement. In early April there will be another meeting between the Chinese and the American side in Washington.
The optimism of investors are unable to awaken even the frequent positive statements by the President of the United States Donald trump, who constantly praises the Chinese government and says that they are on the right track in resolving the trade conflict. However, some Forex traders Club uspeshno trade using positive comments trump as a short-term trading signals to buy instrumentow such as oil. As a result, the total profit of the oil contracts, leading traders Forex Club has made more than 600 thousand dollars.
The situation on the currency market in the Euro/dollar will affect the future policy of the U.S. Federal reserve rate. Despite the fact that at the last meeting of the financial regulator did not change the rate and gave the signal that in the near future is not going to tighten monetary policy, market participants still are quite skeptical on this issue. They do not exclude that in the face of a slowing global economy fed can change the vector of its policy.
However, the pressure on the Euro paired with the dollar continues to have still not resolved the question of Britain’s withdrawal from the European Union. Brexit postponed to a later date, probably in April will be determined by its more specific options. It can be expected that the prospects for the next month, the Euro/dollar will be relatively stable in the background balancing each other factors and will be traded in the range of 1.12-1.14 euros per dollar.
Oil in April may go down to 63-65 per barrel of Brent, as the market there are serious concerns regarding the reduction of global demand for “black gold” because of the slowdown in the global economy.
Gold, which is traditionally a safe asset, against the backdrop of reduced risk appetite, by contrast, is likely to be more expensive – its price may rise to the level of 1.34-1.35 USD per Troy ounce.