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

The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.