Daily summary: Global equity markets rebound after the tragic Thursday session

• President Trump will hold a press conference today
• Stock markets rally fades
• Dollar rises after news that a state of emergency will be declared in the USA

Most stock indexes around the world soared today, attempting to recover losses from its worst trading session since the 1987 market crash the day before. Markets continue to assess the spread of the coronavirus and measures taken by the US government to offset the economic impact of the disease. At the same time, New York already declared the state of emergency and established restrictions on public gatherings. After market opening the Dow Jones rose 6.2%, the S&P 500 went up 6.1% and the Nasdaq gained 6.2%.

The virus epidemic is gaining momentum, only today over 5000 new cases have been reported. This number does not include new patients from France and Italy, therefore we can estimate that the total number of new cases may be around 9,000 which would be a record high. Many countries decided to close schools and public institutions and many social events have been cancelled and postponed, in an attempt to contain the spread of the coronavirus. The epidemic does not spare local politicians either. Today, the Mayor of Miami Francis Suarez has tested positive for coronavirus after event with Brazil President Bolsonaro.

President Trump is scheduled to hold a press conference at the White House today to discuss the coronavirus outbreak in the United States. Accordingly to Bloomberg the US President is planning to declare a state of national emergency. As a result stock indexes began to fell and gave up some of today's gains. The S&P500 is up 2.38%, Dow Jones rose 3.90% and NASDAQ is trading 3.40% higher. The US dollar extended gains against most of the major currencies besides Canadian dollar.

Gold prices plunged today, continuing this week’s massive sell off triggered by the spread of coronavirus around the globe. Gold had the worst week in over three years as investors decided to sell the precious metal in order to pay the margin calls. Gold prices went down -3.49% to $1,519 an ounce.

The United Arab Emirates have announced an increase in oil production to over 4 million barrels per day from April 1, 2020. Oil producers from Russia will meet next week to discuss production prospects. Russian Energy Minister advised that oil prices could rose to $40-$45 per barrel in the third and fourth quarter of the year. However accordingly to Reuters, analysts expects WTI to trade around $30.37 in the second quarter. The oil prices rebound today, WTI is gaining 1.14% and Brent went up 2.20%

University of Michigan sentiment data was the most important data release scheduled for today. The reading was slightly better than expected. Headline index dropped from 101 pts to 95.9 pts.

The economic calendar seems to be very light on Monday. Besides industrial production from China and Empire Manufacturing Index from the US there are no major market moving data scheduled for that day. Therefore headline news should have the biggest impact on trading at the beginning of the week.

EUR/USD continues the fourth day of decline after failure to clear the round level of 1.15 and is testing strong support zone between 1.1063 and 1.1096. Once cleared, the pair may aim to challenge 1.0875, an oscillating price level that previously has acted as both support and resistance. Source: xStation5