Asian indices got a hit from a revenue warning from Apple. The company warned that it would miss the quarterly revenue forecasts amid weaker demand and disruptions in the supply chain due to coronavirus outbreak in China.
PBOC, in an attempt to ease the economic impact, injected 200 billion yuan liquidity via a 1-year medium-term lending facility. PBOC also cut the rate on MLF to 3.15%, from 3.25%.
Nikkei 225 finished 1.44% lower at 23193. Yesterday reported that Japan’s economy shrunk by 6.3% in the fourth quarter. That is the biggest decline in GDP since Q2 2014 and the second-biggest drop since the Financial Crisis. The Hang Seng ended 1.54% lower at 27530. The Singapore FTSE Straits Times finished 0.51% lower at 3194. The Shanghai Composite index closed up 0.05% at 2984. The ASX 200 index In Australia ended 0.07% lower at 7125 snapping a four-session winning streak.
European stock indices are trading mixed. The German DAX is 0.05% higher at 13,752 close to all-time highs. CAC40 index is 0.17% lower at 6,082, while the FTSE MIB in Milan is 0.03% lower at 24,884. In London, the FTSE 100 is 0.06% higher at 7,456.
In the commodities markets, crude oil is lower, the WTI crude is 0.88% lower at $51.61. Brent oil is 1.41% lower at $56.75 per barrel. Gold price is 0.51% higher at 1,588. The gold outlook is bullish as the gold trades above all crucial daily moving averages. Immediate resistance will be met at $1,611 the recent high, while the support stands at $1,447 the recent low. Silver is 0.59% higher at $17.86.
Cryptocurrencies are mixed today. Bitcoin is 0.15% higher at $9,711 hitting the daily low at $9,493 and the daily high at $9,818. Bitcoin momentum is positive as BTCUSD is trading above all major daily moving averages. Support for Bitcoin stands now at $9,000 while the next significant support stands at 8,500.
On the upside, resistance stands at 10,495 yearly top and then at 10,800 round mark. Ethereum trades 1.11% lower at 265.30 with capitalization dropped at 29.09 billion. On the upside, immediate resistance for ETHUSD stands at $274.18 recent high while the support stands at $213.47 the February low. XRPUSD is 2.13% higher at 0.2855. Litecoin (LTCUSD) is 2.55% higher at 72.70. The crypto market capitalization is now at $283.52 billion.
In the Lookout: Moody’s cut China growth forecast to 5.2% for 2020 from 5.8%. Yesterday, Moody’s also cut India’s 2020 GDP forecast to 5.4% vs. 6.6% previous.
The People’s Bank of China (PBOC) set the Yuan reference rate at 6.9825 versus the previous settlement at 6.9795.
Trading Perspective: In the foreign exchange market, the US dollar index (DXY) is 0.02% higher at 99.16. The AUDUSD is 0.44 lower at 0.6683. NZDUSD trades 0.60% lower at 0.6395. USDCHF pair is 0.02% higher at 0.9810.
GBPUSD trades 0.24% higher at 1.3035. The initial support for the GBP against the USD now stands at 1.28 low which if broken, might push the GBPUSD pair down towards 1.20. On the upside, the first resistance for GBPUSD stands at 1.32 and then at 1.3511 recent high.
EURUSD trades 0.03% lower at 1.0830 as the pair’s momentum is bearish. The EURUSD pair breached below the 100-day moving average and now sellers are in control. The first resistance for the EURUSD pair will be met at 1.1224 the yearly high. On the other hand, the first support is at 1.0820 today’s low and then at 1.0803.
USDJPY is trading 0.13% lower at 109.73, having hit the daily low at 109.65 and the daily high at 109.85. The USDJPY will meet first support at 105.43 the August low. On the upside, resistance for the USDJPY now stands at 110.27 January high.
USDCAD trades 0.15% higher at 1.3254. The USDCAD will meet support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the other side, resistance will be met at the 1.3066, the high from December 31st.
