Daily summary: Gains turn into losses for European indices

• White house disappointed the markets
• European indices drop further
• Unsuccessful rebound on the stock market

Monday brought declines that have not been seen since the beginning of the financial crisis in 2008, but today we could observe signs of hope at the opening in Europe. Better moods were initiated by President Trump, who promised that the government will take into consideration various fiscal measures like payroll tax cut or relief in order to help the economy to recover. The President advised that he will meet with Congress to discuss these matters and that more information’s will be provided later on today. So far Investors are still waiting for the presidential press conference and more details about potential fiscal stimulus

Following president suggestion the US indices traded higher and investors were counting on further rebound. However, market sentiment worsened the following statement, in which one of the officials of the Trump administration confirmed that the White House is far from ready to roll out specific economic proposals in its response to the widening impact of the coronavirus outbreak.

Based on this news, US indices erased strong gains as markets remain uncertain about the timing of the stimulus measures announced by government. However the US equities reacted positively to the later news that the cruise line industry and that health insurance companies will receive support from the Trump administration. This announcement helped US indices to recover some losses. The Dow Jones rose 1.17%, the S&P 500 gained 0.78% and the Nasdaq went up 1.7%. Stock markets across Europe traded in the red on Tuesday. DAX lost 1.41%, CAC40 declined 1.51%, FTSE MIB went down 3.28%

Gold prices on Tuesday fell from their seven years highs as hopes for fiscal stimulus turned the market's attention towards more risky assets. As a result gold price dropped 1.65%.

Tomorrow traders should focus on GDP data and Annual Budget Release from the UK. Later afternoon CPI data will be published from the US. Of course coronavirus remain the dominant theme on the markets. Investors should also watch for any news regarding potential fiscal stimulus.

S&P500 (US500) plummeted yesterday and price tested the support level at 2722 pts. Currently we can observe a rebound from this level as it managed to halt downward move. The next resistance level is located at 2904.6 pts. Source:xStation5