Chinese stock indices tumbled in the opening as traders returned to their desk after markets reopened after the holiday of the Lunar New Year. The sharp drop came despite PBOC announcing measures to ease the impact of the outbreak adding liquidity in the markets. The central bank cut the reverse repo rates by 10 basis points and injected 1.2 trillion yuan ($173.8 billion) of liquidity into the markets.
The World Health Organization (WHO) the previous week declared a global emergency as the coronavirus spread to 19 countries. Meanwhile the Philippines reported the first coronavirus death outside of mainland China. Now there are more than 17,300 confirmed coronavirus cases worldwide, and the death toll has reached 361.
The Shanghai Composite is 8.19% lower at 2732. The Nikkei 225 finished 1.01% lower at 22,971. The Hang Seng index as of writing is 0.23% higher at 26375. The Singapore FTSE Straits Times Index is 1.09% lower at 3119. In Australia the ASX 200 ended 1.34% lower at 6923.
European indices started higher the week. The DAX index is 0.26% higher at 13,015. CAC40 is 0.16 higher at 5,815, while the FTSE MIB in Milan is 0.04% higher at 23,246. In London, the FTSE 100 is 0.28% higher at 7,306.
In commodities markets, the crude price is 0.21% lower at $51.45 amid a slowdown in fuel demand in China. Brent oil is 0.76% lower at $56.19 per barrel. Gold price is 0.66% lower at 1,579. The gold technical outlook is positive as the gold price has created a strong base at $1560. The initial hurdle stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
Cryptocurrencies market started the session higher, BTCUSD is 0.37% higher at $9,355 hitting the daily low at $9,213 and the daily high at $9,594. BTCUSD momentum is bullish now as the BTCUSD pair trading above the 50 and 100-day MA. Support for BTCUSD stands now at $8,000 while the next support level stands at 7,500. On the upside, first resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum (ETHUSD) trades 1.19% higher at 190.01 with capitalization now at 20.86 billion.
On the upside resistance for ETHUSD stands at $200 recent high while the support stands at $117.09 the two-week lows. XRPUSD is 0.24% higher at 0.2516. Litecoin (LTCUSD) is trading 1.26% higher at 70.60. The crypto market cap capitalization is $261.76 billion.
In the Lookout: The Chinese Manufacturing PMI came in at 51.1 in January versus the previous 51.5 reading.
The Australia Building Permits rise to 2.7% in December from previous -3.8%. The ANZ Job Advertisements came in at 3.8% topping expectations of 3.7% in January.
Japan Manufacturing PMI came in at 48.3 below forecasts of 49.3 in January.
The People’s Bank of China has set the Yuan reference rate at 6.9249 versus the previous settlement at 6.8876.
Trading Perspective: In the fx market, the US dollar index (DXY) trades 0.27 per cent higher at 97.64, the EURUSD is 0.21% lower at 1.1072. The AUDUSD pair is 0.16% higher at 0.6697. NZDUSD trades 0.04% higher at 0.6464. USDCHF pair is 0.09% higher at 0.9641.
GBPUSD trades 0.93% lower at 1.3075 on renewed fears after PM Boris Johnson set out tough terms for European Union talks. Last week the Bank of England kept interest rates unchanged. The first support for the British pound against the US dollar now stands at 1.2578 low which if broken, might push the GBPUSD pair further down towards 1.20. On the upside, first resistance stands at 1.3511 recent high.
EURUSD trades 0.20% lower at 1.1072 as the pair’s momentum has turned now neutral. The EURUSD returned above the 100-day moving average and now buyers are in control. First resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1058 today’s low and then at 1.10.
In euro futures the open interest decreased by 7200 contracts and volume increased by 64300 contracts.
USDJPY is trading 0.14% higher at 108.48, having hit the daily low at 108.30 and the daily high at 108.69. USDJPY will meet support at 105.43 the August low. On the upside, initial resistance for the USDJPY now stands at 110.28 January high.
USDCAD trades 0.12% higher at 1.3247, as the Bank of Canada the previous week kept interest rates unchanged. The USDCAD pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flipside, resistance will be met at the 1.3066 the high from December 31st.
