US futures still down after worst week since 2008

23/3/2020

Dollar strengthening halts

US stock market plunge renewed on Friday as Senate considered a second bailout package that could exceed $1 trillion while President Trump announced interest on student loans would be waived temporarily following postponement of the US tax filing in the US to July 15. The S&P 500 fell 4.3% to 2304.92, almost doubling the weekly loss to 15%. Dow Jones industrial dropped 4.6% to 19173.98. The Nasdaq ended 3.8% lower at 6879.52. The dollar strengthening halted as the Federal Reserve’s bond and other debt security purchases to provide liquidity reached at least $300 billion for the week. 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, lost 0.5% to 102.37 and is lower currently. Futures point to lower market openings today.

CAC 40 leads European indexes’ rebound

European stocks rebounded on Friday. Both EUR/USD and GBP/USD reversed their sliding on Friday with both pairs higher currently. The Stoxx Europe 600 Index added 1.4% led by travel and leisure shares. The DAX 30 advanced 3.7% to 8928.95 Friday. France’s CAC 40 jumped 5% and UK’s FTSE 100 edged up 0.8% to 5190.78.

Asian indexes fall while Nikkei rebounds

Asian stock indices are mostly lower today after Senate voted against the nearly $2 trillion economic rescue package on weekend as Democrats claimed the bill was tilted too much toward aiding corporations and would not do enough to help individuals and healthcare providers. Senate will be voting again on the revised bill today. Nikkei however managed to gain 2% to 16887.78 after reports the International Olympic Committee might postpone, rather than scrap, the Tokyo Games. Yen continued its climbing against the dollar. China’s markets are falling: the Shanghai Composite Index is down 3% while Hong Kong’s Hang Seng Index is 5.2% lower. Australia’s All Ordinaries Index plummeted 5.6% despite government announcement of $38.5 billion stimulus package on Sunday and resumed sliding of Australian dollar against the greenback.

AU200 rplunges below MA(200) 3/23/2020 Market Overview IFC Markets chart

Brent down

Brent futures prices are in retreat following 20.3% plunge last week. Prices fell on Friday after news that Russian President Vladimir Putin refuses to submit to what Russia’s government sees as oil blackmail from Saudi Arabia. Brent for May settlement lost 5.3% to $26.98 a barrel Friday.

Gold rebounds as Dollar weakens

Gold prices are extending gains today. Prices fell on Friday as dollar strengthening reversed. Gold for April delivery gained 0.4% to $1484.60 on Friday.




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