Market sentiment analysis:
- Trader confidence has rallied strongly Tuesday after the recent sharp falls in stock markets and crude oil prices[1].
- Confidence has been boosted by hopes of stimulus by the authorities and a possible rapprochement between Saudi Arabia and Russia over oil supply.
- In the meantime, some traders might be looking for less volatile assets to avoid the turmoil elsewhere.
Trader confidence returns
Traders are more confident Tuesday after the previous tumbles in stock markets and crude oil prices. Sentiment has been boosted by both hopes of action by the authorities to avoid economic damage and by signs that Saudi Arabia and Russia might compromise in their oil supply dispute.
US Crude Oil Price Chart, One-Hour Timeframe (March 5-10, 2020)
Chart by IG (You can click on it for a larger image)
In this webinar, I looked at both the assets that have been most volatile and also the assets that have been relatively stable and might therefore be of interest to traders seeking less volatility.
How to Invest During a Recession: Investments & Strategy[2]
I also looked at trends in the other major currency, commodity and stock markets, at the forward-looking data on the economic calendar[3] this week, at the IG Client Sentiment page[4] on the DailyFX website[5], and at the IG Client Sentiment reports[6] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[7] podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
DailyFX[8] provides forex news and technical analysis on the trends that influence the global currency markets.
