US stocks showed strong growth on Monday, completely offsetting the plunge it experienced on Friday. Dow Jones rose 1.8%, while S&P 500 and Nasdaq climbed 1.4% and 0.8%, respectively.
Most likely, investors have recovered from the shock they had last week, when Fed announced possible rate hikes in 2022.
And following the US markets, Asian markets also shot up this morning. Japan indices jumped 3.1%, while China indices gained 0.4%.
As for oil, it grew 0.3% today, so Brent is now around $ 75 - $ 75.10, while WTI is more than $ 73. There are forecasts that oil will rise to $ 100 in 2022.
With regards to the epidemiological situation, the total number of new COVID-19 infections in the world fell to 280,000, thanks to mass vaccinations. New cases in India slipped to 40,000, while new cases in UK dropped to 10,000. But the Indian strain of coronavirus may set off another wave, so authorities are being extra cautious on everything.
Going back to the US market, S&P 500 is currently at 4.224 points, and is forecast to range around 4.180 - 4.260 points. The growth observed yesterday suggests that investors are ready to purchase stocks again, mainly due to the string recovery in YS economy. Apparently, Q1 GDP rose 6% (per annum), thanks to the boom in real estate and construction.
Accordingly, dollar slipped a bit, so the USD index is now at 91.90 points. It is expected to reach 91.50 - 92.40 points today.
As for USD/CAD, the cost is currently 1.2370, but is projected to fluctuate around 1.2300-1.2470. As expected, strong resistance was met at 1.2450-1.2500, so the pair began to return back to previous prices. The pair will continue to decline until dollar grows again.
Conclusion: The market is calm, but investors are obviously ready for new purchases in the stock market. If that happens, indices will soar to all-time highs.
