Stock Market Today

Latest update: 28-05-2020 19:53

I constantly follow all the stock market news. I only post the stock market news that really sets stock markets in motion.

Reducing the lockdowns gives investors hope. There was mostly negative stock market news today. Investors, however, continue to hope that after the lockdowns are phased out, things will be all right again soon.

To start with those lockdowns. The rapid ending is a fact. Despite the fact that COVID-19 is still present in all those countries. In the US, there were more than 20,000 new cases and more than 1,500 deaths yesterday. More than 500 new cases in Germany, Italy and Spain yesterday.

These are numbers where things got out of hand a few months ago and the lockdowns came shortly thereafter. Outbreaks at Dutch slaughterhouses prove that things can go quickly wrong.

COVID-19 appeared to have been successfully combated in South Korea. However, it has reared its head in recent days. Reason for the government to introduce a number of measures again during 2 weeks.

When I look at the stock markets, investors do not take into account the reintroduction of restrictive measures at all. I think Pentecost weekend will be an important test. People are happy that the worst with those lockdowns is over and can make Pentecost a kind of end lockdown / coronavirus party.

Two weeks after Pentecost, we will know how it turned out. Few new cases and we can consider that COVID-19 as largely defeated. More cases and governments take measures again.

It is still going bad economically. In the US, durable goods orders declined by 17.2% on a monthly basis in April. In March, the monthly decline was 16.6%. The percentages are on a monthly basis. So after that bad month of March, another 17.2% drop a month later.

Last week, 2.1 million Americans applied for unemployment benefits. During the corona era, the counter now stands at 41 million applications. The number of people on benefits for more than 2 weeks decreased by 4 million.

As a result of the reduction of the lockdowns, last week 4 million Americans were able to work again. That seems positive, but it also indicates that after a lockdown, not everyone can get back to work immediately.

Because there are still 21 million Americans who have been receiving benefits for more than 2 weeks. That companies, despite the reduction of lockdowns, still had to decide to fire 2 million people says a lot.

Far fewer people hiring than before, large-scale layoffs and hard declining orders for durable goods are still occurring. That full economic recovery will take a long time.

The gold and silver price

Rising prices. Here one looks at completely different matters. The situation around Hong Kong and the increasing tensions between the US and China play a major role here.

The Chinese today passed the controversial Hong Kong law. It is a first step that makes it possible to intervene extensively in Hong Kong. We now have to wait for the reaction of the Americans.

The lower dollar provides support for gold and silver. The silver mine and gold mine shares on average with the stock exchanges still open in the plus.

The AEX

Yesterday a false outbreak and today just as cheerful a strong increase. Yesterday the AEX was a laggard. Today the biggest riser of almost all stock exchanges. Only the Italian stock market rose faster. Not surprising, of course, with the prospect of a gift of hundreds of billions since yesterday.

With the AEX, the Adyen share stands out. Profit taking in recent days because fewer internet orders and therefore payments via Adyen can be expected due to the reduction of the lockdowns. Today one of the biggest climbers with almost 5%.

Sellers who are selling because of an economic change and buyers who are buying because the stock is cheaper today than it was a few days ago. The same story also applies on the American stock exchanges for tech stocks.

It are the (much too) fast-responding bargain hunters who have been keeping the stock markets high for 2 weeks. The AEX has arrived at resistor 540. Tomorrow is the last day of the month.

Then it is important that the AEX closes the month above the support at 530. Based on the technical analysis, that would be a very positive signal.

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