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Bannockburn: stocks higher, gold softer on hopes for U.S. measures

Kitco News

Financial markets are bouncing, leaving gold on the defensive, on hopes the U.S. will come up with a plan to combat economic damage from the coronavirus outbreak, said Marc Chandler, managing director with Bannockburn Global Forex. “It appears after a few days of miscues, U.S. officials struck the right chord, and the global capital markets seemed to stabilize shortly after the U.S. session ended,” Chandler said. “President Trump's press conference today is expected to spell out in greater detail relief for households and businesses.” Chandler cited news reports that U.S. President Donald Trump indicated a payroll tax cut and "very substantial" relief for industry are being considered. Asia-Pacific equities bounced from Monday’s sell-off, and stock-index futures in the U.S. are higher in overnight screen trading. Treasury yieldshave also bounced, Chandler said. “April WTI [West Texas Intermediate crude oil] jumped 5% but pared early gains,” he said. “It is up around 3.6% after falling more than 40% over the past four sessions. Gold is off by a little more than 1% (~$1662).”

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