Asian stocks finished higher mirroring Wall Street indices on monetary policy easing. The emergency rate cut from the Fed yesterday eased investors’ fears about the impact of the coronavirus outbreak.
Global confirmed cases had surpassed today 95,000 and many companies around the globe are banning traveling while they offer the employees the choice to work from home. There is no doubt that the coronavirus outbreak will damage global growth in the first quarter, and might even affect also and the second quarter of 2020.
European Commission warned that France and Italy are at risk of slipping into recession, while the IMF said it sees “direr” possibilities ahead for the global economy. U.S. lawmakers agreed on a $7.8 billion spending package to respond to the coronavirus outbreak.
Nikkei 225 finished 1.09% higher at 21,329. The Shanghai Composite index closed 1.99% higher at 3071. The Singapore FTSE Straits Times ended 0.22% lower at 3018. Hang Seng in Hong Kong was 2.08% lower at 26767. The ASX 200 index finished 1.1% higher at 6395.
European stocks retreat in early trading session today. The German DAX is 1.30% lower at 11,971. CAC40 index is 1.58% lower at 5,379, while the FTSE MIB in Milan is 1.45% lower at 21,626. In London, the FTSE 100 is 1.71% lower at 6,698.
In the commodities markets, the crude oil price is 0.68% lower at $46.45 while the Brent oil is 1.38% lower at $50.89 per barrel. The gold price is trading higher, adding 0.58% to 1646. The gold price is bullish, and the first resistance will be met at $1,689 the recent high, while the support stands at $1,584 the recent low. Silver price is 0.10% lower at $17.19.
The cryptocurrencies rocketed today with gains over 3%. Bitcoin (BTCUSD) is 4.18% higher at $9,122 hitting the daily low at $8,699 and the daily high at $9,117. Bitcoin’s technical outlook is bullish now as the cryptocurrency broke above the 50-day moving average. First support for BTCUSD stands now at $9,400 the low from February 28, trading session. On the upside, the first resistance stands at 9,117 the daily high and then at 10,495 the yearly top.
Ethereum (ETHUSD) trades 3.73% higher at 232.90 with capitalization at 25.60 billion. The initial resistance for ETHUSD stands at $274.18, the February top while the first support stands at $213.47 the February low. Ripple is 2.75 higher at 0.2412. Litecoin is 4.05% higher at 62.85. The crypto market capitalization stands now at $260.77 billion.
In the Lookout: Australia’s Trade Balance came in at 5210M above the forecasts of 4800M in January, the Exports declined to -3% in January from the previous 1%.
The People’s Bank of China has set the Yuan (USDCNY) reference rate at 6.9403 versus yesterday’s fix at 6.9514.
Trading Perspective: In the foreign exchange markets, the Aussie dollar is 0.15% lower at 0.6617 against the US Dollar. The US dollar index is 0.41% higher at 96.97. NZDUSD trades 0.33% higher at 0.6318.
USDCAD Higher After BOC Cut Interest Rates
USDCAD continues higher for the third consecutive trading session. Yesterday the Bank of Canada cut interest rates by 50 basis points to 1.25% from 1.75% in an attempt to support the economy amid the coronavirus outbreak. The Canadian dollar was under selling pressure after the BOC decision, with the USDCAD pair breaking above the 1.34 mark.
USDCAD is 0.27% higher at 1.3420 today as the bullish momentum for the pair is intact and higher levels might be on the cards. Immediate resistance for the pair would be met 1.3420 the daily high. The next resistance point stands at 1.3430 the high from yesterday’s trading session.
On the flip side, initial support for USDCAD stands at 1.3382 the daily low. More bids might emerge at 1.3325 the low from March 4. The recent double bottom at 1.3318 will provide the next support area.
