• FED announces further liquidity tools
• Jump in Covid-19 infections in New York state
• US government is preparing further stimulus package
• Jump in Covid-19 infections in New York state
• US government is preparing further stimulus package
European indices finished session higher based on the better-than-expected PMI data from China and hopes of further stimulus measures from major central banks and governments around the world. DAX gained 1.22%, CAC 40 went up 0.40% and FTSE 100 advanced 1.95%
US indices are trading lower after a volatile start of today’s session. Initially market sentiment improved as the Chicago PMI and CB Consumer Confidence dropped less than expected in March. Investors also welcomed the news that the US government is preparing a fourth stimulus package to help the economy to recover and to stop the spread of the pandemic as the number of infections in the US increased to 175,000. Also Fed announced a temporary lending facility agreement for central banks, aiming to provide an alternative source of US dollars. However stocks fell as the number of new infections in New York state jumped 14% to 75.795. During today’s session Dow Jones dropped 0.55 % ; S&P 500 went down 0.66% and the Nasdaq is trading 0.18 % lower.
US indices are trading lower after a volatile start of today’s session. Initially market sentiment improved as the Chicago PMI and CB Consumer Confidence dropped less than expected in March. Investors also welcomed the news that the US government is preparing a fourth stimulus package to help the economy to recover and to stop the spread of the pandemic as the number of infections in the US increased to 175,000. Also Fed announced a temporary lending facility agreement for central banks, aiming to provide an alternative source of US dollars. However stocks fell as the number of new infections in New York state jumped 14% to 75.795. During today’s session Dow Jones dropped 0.55 % ; S&P 500 went down 0.66% and the Nasdaq is trading 0.18 % lower.
The US dollar traded higher today against most of the major currencies besides British pound which surged above $1.24, after falling in the morning due to concerns about the spread of the coronavirus. Fitch lowered UK’s sovereign debt as the amount of debt would increase amid efforts to combat the rapid spread of the pandemic while uncertainty surrounding trade negotiations with the European Union also poses risks.
Oil prices managed to rebound slightly, after US President Donald Trump and Russian President Vladimir Putin agreed to have their top energy officials discuss the current situation on oil markets. However oil prices are still trading under pressure as travel restrictions and city lockdowns around the world could last months and negatively affecting oil demand. US crude went up 0.14% while Brent fell 0.15%.
Gold prices fell below $1610 an ounce today as risk appetite improved slightly based on better macroeconomic data. In the first quarter gold prices rose 6.1%.
Market volatility is expected to continue as investors worry about how the coronavirus outbreak will stop and how bad the consequences will be while trying to assess if the stimulus measures announced will be enough to offset the economic impact of the pandemic.
ADP Non-Farm Employment Change and ISM Manufacturing PMI are the main data scheduled to be announced on Wednesday. Oil traders should pay attention to US Crude Oil Inventories numbers. Apart from that, German, Switzerland and Spain will release their Manufacturing PMI figures. Of course Markets’ focus still will be on coronavirus spread and response to it.
EUR/USD is accelerating the downside during today’s trading session. Euro was trading under heavy pressure and the currency pair tested 1.0930 support level. Later in the session Euro managed to rebound and currently EUR/USD is trading near the key support level at 1.10. Source: xStation5
