Equities erase yesterday’s losses

It looks like Wednesday will be a bullish day for stocks, and yesterday’s decline is already nearly erased. US futures are up half a percent during the London’s session.

Later in the day, the European Central Bank President Christine Lagarde is set to speak later Wednesday at the International Monetary Fund and the World Group’s virtual annual meetings.

Since the ECB stayed put at its latest meeting and failed to announce new stimulus, markets hope that Lagarde will hint at more QE as soon as possible as the virus situation is rapidly deteriorating in the EU.

Moreover, the EU industrial production data will be released, and IP should remain deeply negative on the year-on-year basis, suggesting no V-shape recovery in the eurozone. 

Metals plunged on Tuesday amid dollar strength as the EURUSD pair was down circa 80 pips. Thus, gold is now back below 1,900 USD, but the dip seems to be a good re-entry point for bulls. Silver was trading somewhat above 24 USD

Source: https://www.axiory.com/market-news/equities-erase-yesterday-s-losses