Stocks, gold, crude oil, and bonds fell as investors liquidating portfolios in search of cash as central banks and governments failed to calm markets despite the monetary and fiscal measures. Coronavirus confirmed cases continue to rise across the globe and yesterday top 218,000 for the first time; while the death toll rose to 9,000. Analysts expect the U.S. economy to drop by 14%.
Nikkei 225 index finished 1.04 lower at 16,552. The Shanghai Composite index closed 0.88% lower at 2704. The Singapore FTSE Straits Times is 4.72% lower at 2311. Hang Seng in Hong Kong was 2.55% lower at 21723. The ASX 200 index finished 3.4% lower at 4782.
European indices turn negative after a positive start. The German DAX is 1.13% lower at 8,314. CAC 40 index is 1.43% lower at 3,698, while the FTSE MIB in Milan is 1.45% lower at 15,334. In London, the FTSE 100 is 2.20% lower at 4,968.
In commodities markets, the crude oil price rebounds today. WTI crude oil is 12.59% higher at $23.45 while the Brent oil is 0.83% higher at $26.68 per barrel.
The gold price is 0.45% higher at 1491. The gold price immediate resistance stands at $1,703 the recent high, while the support stands at $1,451, the low from March 16 trading session. Silver price rebounds adding 1.48% at $12.08.
Cryptocurrencies are trading slightly lower today. Bitcoin (BTCUSD) is 0.34% lower at $5,388, hitting the daily low at $5,253 and the daily high at $5,463. Bitcoin’s technical outlook is bearish as the cryptocurrency trades below the major daily moving averages. Immediate support for BTCUSD stands now at $4,431, the low from March 14, trading session. On the flip side, the first resistance is seen at the 6,000 mark, and then at 9,123 Friday’s high. The next hurdle will be met at 10,495 the yearly top.
Ethereum is 1.00% lower at 117.44, with capitalization at 12.80 billion. The first resistance for Ethereum stands at $119.38, the daily high, while the first support stands at $102.00 the low from March 16. Ripple (XRPUSD) is 0.93% lower at 0.1464. Litecoin (LTCUSD) is 0.14% lower at 34.82. The crypto market capitalization stands now at $151.25 billion.
In the Lookout: New Zealand REINZ House Price Index increased to 3.1% in February from the previous 0.3%
The RBA cut Official Cash Rate by 25 basis points to 0.25%.
Trading Perspective: In the foreign exchange markets, the Aussie dollar is 0.95% lower at 0.5715 against the greenback. The Japanese Yen is lower against the US Dollar, the USDJPY is 1.54% higher at 109.67. The U.S. dollar index is 1.48% higher at 102.71. NZDUSD trades 1.15% lower at 0.5670.
EURUSD Slumps to Multi-Year Lows
EURUSD is 1.47% lower at 1.0750 making fresh 40-month lows after the European Central Bank announced earlier a bond-buying program up to 750 billion of company and government debt across eurozone countries in an emergency move to fight the coronavirus outbreak impact.
On the economic data front, the German IFO Business Climate slumped to 87.7 in the preliminary reading for March 2020. Clemens Fuest, head of IFO institute said that the German economy might shrink by 6% due to the coronavirus spread.
On the technical analysis side, the picture is negative for the pair as it has reached levels that we haven’t seen since December 2016. The first support for EURUSD stands at 1.0731 the daily low. The next support zone would be met at 1.0684 the low from April 21, 2017.
On the upside, initial resistance stands at 1.0981 the daily top. The next hurdle will be met at 1.1029 the 50-day moving average. More offers would emerge at 1.1060 the 100-day moving average.
