DT he decision of the Federal Reserve to support the domestic economy hit hard by the crisis with additional emergency aid worth $ 2.3 trillion has caused a rather quiet (pre-) holiday trade on Maundy Thursday. The new package of measures primarily serves to support municipalities and small to medium-sized companies. On the one hand, loans are to be granted via the banks, and on the other hand bonds are to be acquired from states and large municipalities.
This had caused the markets to move more than the recently announced first jobless claims, which at 6.6 million did not reach a new high, but are still at a record level. Within three weeks, more than 16 million people across the country have lost their jobs.
The market-wide F.A.Z index, which started more than 2 percent in the morning and then gave way quickly, recovered again and is currently 2.4 percent up again at 1919 points. Wall Street, which had already been slightly down in the pre-IPO, opened more firmly. The S&P 500 index is currently up 1.2 percent.
The US dollar quickly depreciated against the euro from $ 1.0806 to $ 1.092, and the yield on the ten-year US government bond rose from 0.712 to 0.744 percent as a result of the renewed easing of US monetary policy. The price of gold, which had already held up well throughout the day, went a step further and has now reached a seven-year high of $ 1678 and is once again starting to scratch the 2012 highs.
There was also a lot of movement on the oil market. The price of Brent North Sea oil rose more than 8 percent from the previous evening to $ 35.79 for the 159-liter barrel. In the markets, it was assumed that the oil producing countries of the “Opec + Group”, who are currently negotiating a cut in production, will decide on a reduction of 10 million barrels a day.
When the funding cut was actually on the table at this level, the market reacted disappointed. the price plummeted, dropping to $ 33.35 last and most of the gains. Worries dominate again that the cut in funding will not be enough to offset the slump in demand. In addition, the decision is likely to be on sound feet because Russia has agreed to cuts, but it requires the United States to make more far-reaching commitments to reduce production than to leave it to market forces. The agreement contains various mines, says Helima Croft, strategist at Bank RBC.
On the one hand, American President Donald Trump rejected this, on the other hand, he said that the market would ensure lower production. The markets again understood this as a signal that the oil price does not have much potential to rise.