Asian stocks slump downwards as investors are trying to assess the coronavirus outbreak’s impact on global trade and economy. Fears that the lockdown in the economy will last longer than initially expected send stocks lower for one more day. Nikkei 225 index finished 1.68 lower at 16,726.
The Shanghai Composite index closed 1.83% lower at 2728. The Singapore FTSE Straits Times is 1.18% lower at 2425. Hang Seng in Hong Kong was 4.18% lower at 22291. The ASX 200 index finished 6.43% lower at 4953.
European indices tumble on Wednesday. The German DAX is 5.66% lower at 8,430. CAC 40 index is 6.09 lower at 3,748, while the FTSE MIB in Milan is 3.27% lower at 14,813. In London, the FTSE 100 is 5.33% lower at 5,012.
In commodities markets, the crude oil price is under selling pressure. WTI crude oil is 9.51% lower at $24.38, while the Brent oil is 6.64% lower at $26.75 per barrel.
The gold price is 1.42% lower at 1505. The gold price immediate resistance stands at $1,703 the recent high, while the support stands at $1,481 the low from yesterday’s trading session. Silver price plunge 3.59% at $12.10.
Cryptocurrencies retreat in the early European session. Bitcoin (BTCUSD) is 2.32% lower at $5,230, hitting the daily low at $4,997 and the daily high at $5,475. Bitcoin’s technical outlook is bearish as the cryptocurrency makes consecutive lower lows and lower highs. 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 0.98% lower at 115.20, with capitalization at 12.45 billion. The first resistance for Ethereum stands at $118.35, the daily high, while the first support stands at $102.00 The low from March 16. Ripple (XRPUSD) is 1.95% lower at 0.1445. Litecoin (LTCUSD) is 1.05% lower at 33.75. The crypto market capitalization stands now at $147.57 billion.
In the Lookout: Italy Industrial Sales s.a. came in at 5.3% beating expectations of -0.1% in January, the Industrial Orders came in at 1.2% above the forecasts of -0.2%.
Trading Perspective: In the foreign exchange markets, the Aussie dollar is 2.07% lower at 0.5875 against the greenback. The Japanese Yen is lower against the U.S. Dollar. The U.S. dollar index is 1.04% higher at 100.85. NZDUSD trades 1.95% lower at 0.5821.
NZDUSD Slumps to 11-Year Lows
NZDUSD is under selling pressure for the fifth day in a row as the USD gains momentum across the board. The global sell-off in equities continues today as the coronavirus outbreak pushes global economies in recession. The strength in the U.S. dollar drives the USD index above the 100 mark. The NZD makes fresh 11-year lows today against the U.S. dollar.
On the technical side, the picture has deteriorated as the pair makes consecutive lower lows and lower highs, so we can’t rule out lower levels despite the pair has entered oversold area. On the downside, immediate support stands at 0.5817 the daily low. The next support for NZDUSD will be met at the 0.5800 psychological mark. On the upside, first resistance stands at 0.5966, the daily top. More sellers might emerge at 0.6094 the high from yesterday’s trading session. In case of a credible break above, the next resistance will be met at 0.6130, the high from March 16.
