Dow erases virtually all gains since President Trump’s 2017 inauguration
US stock market erased previous session gains on Wednesday despite Congress passing the first of two planned bills providing financial aid to businesses suffering economic damage from the coronavirus pandemic, while Federal Reserve promised a liquidity program for money market mutual funds. Investors weren’t impressed by the European Central Bank announcement of new program to buy bonds worth 1.1 trillion euros throughout this year. The S&P 500 fell 5.2% to 2398.10. The Dow Jones industrial average plummeted 6.3% to 19898.92. Nasdaq slumped 4.7% to 6989.84. The dollar strengthening slowed as the consumer inflation annual rate slipped to 2.3% from 2.5% in January. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 1.3% to 100.72 and is higher currently.
CAC 40 led European indexes retreat
European stocks also pulled back on Wednesday erasing previous session gains. The European Central Bank launched new bond purchases planning to buy 1.1 trillion euros worth of bonds worth 6% of the euro area’s GDP. The EUR/USD slowed its decline yesterday while GBP/USD accelerated, with both pairs lower currently. Pound lost 3.6% hitting its lowest point since October 2016. The Stoxx Europe 600 ended down 4% led by energy shares. Germany’s DAX 30 lost 5.6% to 8441.71. France’s CAC 40 plunged 5.9% while UK’s FTSE 100 fell 4.1% to 5080.58 despite government’s pledge of nearly $400 billion aid to help businesses through the crisis.
Australia’s All Ordinaries Index leads Asian indexes slump
Asian stock indices are again on defensive after sharp losses on Wall Street overnight. Nikkei retreated 1.1% to 16546.50 despite continuing yen slide against the dollar. Markets in China are falling: Shanghai Composite Index is 1% lower while Hong Kong’s Hang Seng Index is down 2.4%. Australia’s All Ordinaries Index tumbled 3.4% despite Australian dollar’s continuing slide against the greenback as the Reserve Bank of Australia cut interest rates a quarter percentage point to 0.25%.
Brent slips
Brent futures prices are extending losses today. Prices fell yesterday as the Energy Information Administration reported US crude oil inventories rose by 2 million barrels last week, eighth weekly rise in a row: May Brent fell 13% to $24.88 on Wednesday.
Gold edges up
Gold prices are advancing today after a retreat on Wednesday. April gold price of an ounce of gold fell 3.1% to $1477.90 on Wednesday.
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.