Stocks, commodities and Trump during the crisis

Published on: 10-Jul-2020
Category: Trading
Last updated: 10-Jul-2020

Stocks, commodities and Trump during the crisis

The markets continue to be nervous and uncertain about the further course of the corona pandemic. There are up to 60,000 new infections in one day in the United States, more than in any other country in the world. The country appears to be at the mercy of the virus because the government doesn’t help to fight the spread of the pandemic. President Donald Trump does not want to call for new lockdowns or economic restrictions in his November presidential campaign.

Wall Street shows the mood of investors about the development of the country. An inconsistent course with a current downward trend, which stems from the record number of new infections, is evident from the large indices from New York. The leading Dow Jones index ended trading yesterday with a minus of 1.39 percent and the broadly diversified S&P 500 also declined by 0.56 percent. As in previous weeks, the tech index Nasdaq Composite was able to prove itself and currently stands at 10548 points with an increase of 0.53 percent. On Thursday, the Nasdaq 100, which tracks the 100 most important values ??in the entire Nasdaq index, reached a record high of 10,785 points. Tech values ??are now considered a safe haven for investors during the pandemic. Due to exit restrictions, the lives of many people have shifted to the Internet, both privately and professionally. Accordingly, the courses from Apple, Microsoft and Amazon have seen a lot of growth.

But not only the tech stocks were able to prove themselves in the crisis, but also the precious metal gold shone again during the pandemic. On Wednesday, one troy ounce of gold cost more than $ 1,800 for the first time in nine years. In September 2011, the price was $ 1971 per troy ounce. In crises or recessions, gold is also considered a safe haven and always experiences high phases in these times. The price of gold has risen by 37 percent since the beginning of the year. Funds investing in gold acquired 734 tons of gold in the first half of the current year, which means that the inflows from the crisis year 2009 have already been exceeded.

When the price of gold rises during the crisis, the price of another raw material usually drops: oil. The fear of new restrictions, the associated loss of production and ultimately falling demand leads to a low price of black gold. At midday, the price of the American light oil WTI fell 2.3 percent to $ 39.73 a barrel. The price of the North Sea Brent has also dropped 2.1 percent and was priced at $ 41.46.


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