Safe havens sought. Liquidity is in demand

DM

Administrator
Staff member
The situation on the world's stock markets remains extremely tense on Wednesday. European stock indices are currently trading 5% lower, without any ambition to move up. The American stock market is also expected to open about 5-6% down, according to futures. Gold, to the surprise of many, remains weak at around $1,500.

So where are the safe havens? In the current environment, liquidity is clearly being sought. The US dollar in particular remains in demand. Its daily gain against the euro is around 0.2% after more than 1.0% yesterday. At 100.10, the dollar index DXY is at its highest level since April 2017, and the upward trend is unbroken so far.

Cautious investors remain on the sidelines. Volatility is likely to remain elevated, especially since we will not feel the first effects of the slump in demand in the real economy and rising unemployment until the coming weeks.
 
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