Daily summary: Global markets fall on weak data

8:18 PM April 3, 2020

• Catastrophic NFP report,
• Coronavirus infections rise above 1 million,
• US dollar extends gains,
 
Global equity markets traded in red on Friday in another volatile session as investors remain worried about the impact of the coronavirus on the global economy. Today the number of infected people has exceeded 1 million and it is expected that it will continue to grow in the near future. Concerns regarding recession rose after the publication of tragic data from the US labor market. Today’s NFP report showed, that the US economy shed 701,000 jobs last month and the unemployment rate rose to over a 2-year maximum of 4.4%. PMI data from Europe also fell below expectations. In March Services sector in UE recorded the sharpest drop in history while European governments intensified their efforts to stop the rapid spread of the pandemic.
DAX finished today's session 0.6% lower, CAC40 lost 1.6% and FTSE 100  dropped 1.2%. Across the Atlantic Dow Jones went down 1.79%, S&P fell 1.58 % and NASDAQ lost 1.69%.
 
The DXY went up for the third straight day to trade above 100.7 on Friday as fast spreading coronavirus pandemic continue to drive investors to safe haven currencies. Precious metals traded mixed during Friday’s session. Gold gained 0.34% and silver fell 1.0%.
 
Oil prices continued to rise today based on hopes that the price war between Saudi Arabia and Russia could soon come to an end. President Trump said he has secured a deal between both sides, which could lead to production cuts. The OPEC+ group is scheduled to hold a virtual meeting on Monday. President Donald Trump will discuss the current situation with representatives of the US oil industry later on today. Newswires reported a draft proposal from OPEC that Saudi Arabia was willing to reduce output at least 3 million barrels a day, and Russia 1.5 million, if other members as the U.S., Canada and Brazil cut the production by 2 million b/d. During today’s session WTI crude rose 6.28% and Brent went up 9.45%.
 
Economic calendar for Monday is almost empty. BOC Business Outlook Survey is main print scheduled for release but it should not have much of an impact on prices. Markets’ focus will be on the OPEC+ meeting and headlines regarding the spread of the pandemic.
Brent (OIL) managed to break above the upper limit of the range at $31.17. Should upbeat moods prevail, resistance at $39.09 may come into play. On the other hand, breaking below the $31.00 level may lead to a bigger downward correction towards support level at $24.41. Source:xStation5

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