Futures indicate higher opening of US market - 24.3.2020

US stocks closed lower as Senate failed to agree on stimulus

US stock market retreat slowed on Monday as Senate failed to pass the $1.3 trillion aid package that Democrats claimed is tilted toward corporate bailout measures. President Trump said he was considering how to reopen the US economy when a 15-day shutdown ended next week. The S&P 500 lost 2.9% to 2237.40. Dow Jones industrial fell 3% to 18591.93. The Nasdaq slid 0.3% to 6860.67. The dollar weakening continued as the Federal Reserve’s announced it would buy unlimited amount of Treasurys and mortgage-backed securities and bolster emergency lending facilities: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% to 102.28 and is lower currently. Futures point to higher market openings today.

FTSE 100 led European indexes retreat

European stocks pulled back on Monday as the coronavirus outbreak continued to weigh on global financial markets. The EUR/USD extended gains while GBP/USD’s slid yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 4.4% led by travel and leisure shares. The DAX 30 slid 2.1% to 8741.15. France’s CAC 40 slumped 3.3% and UK’s FTSE 100 lost 3.8% to 4993.89.

Nikkei leads Asian indexes rebound

Asian stock indices are rebounding today following Fed’s pledged of limitless asset purchases on Monday to support market functioning. Nikkei recovered 7.1% to 18092.35 despite resumed yen climbing against the dollar. Markets in China are rising as authorities started lifting a lockdown in most of its virus-hit Hubei province after recording almost no new infections for more than a week: the Shanghai Composite Index is up 2.4% and Hong Kong’s Hang Seng Index is 4.5% higher. Australia’s All Ordinaries Index rebounded 4.2% despite continuing Australian dollar climb against the greenback.

Nikkei recovers below MA(200) 3/24/2020 Market Overview IFC Markets chart

Brent rebound accelerates

Brent futures prices are extending gains after rebounding on Monday. Prices ended higher yesterday: May Brent crude closed 0.2% higher at $27.03 a barrel on Monday after 46.5% drop for the month to date.