Futures on US stock indexes rebound after record losses

Dmitry Lukashov IFC Markets

Nasdaq records worst loss ever

US stock market plunge accelerated on Monday despite Fed’s full percentage point rate cut Sunday and the start of the purchase of $700 billion in Treasurys and mortgage-backed securities. President Trump called on Americans to avoid gatherings of 10 people or more. The S&P 500 fell 12% to 2386.13. Dow Jones industrial sank 12.9% to 20188.52. The Nasdaq tumbled 12.3% to 6904.59, suffering biggest daily loss ever. The dollar strengthening halted as the Empire State manufacturing index plunged 34.4 points to a record low of negative 21.5 in March: 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, fell 0.4% to 98.08 and is lower currently. Futures on stock indexes indicate higher openings today.

CAC 40 led European indexes rout

European stocks joined global retreat on Monday. The EUR/USD turned higher on Monday while GBP/USD’s slide slowed yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 5.1% led by travel and leisure shares as European Commission president proposed banning most foreign visitors into Europe for 30 days. The DAX 30 slumped 5.3% to 8742.25. France’s CAC 40 dropped 5.75% and UK’s FTSE 100 lost 4% to 5151.08.

Australia’s All Ordinaries Index rebounds with Asian indexes mixed

Asian stock indices are mixed today following Monday’s plunge. Nikkei recovered 0.1% to 170202.12 as yen’s climbing against the dollar halted. Markets in China are falling: the Shanghai Composite Index is down 1 % and Hong Kong’s Hang Seng Index is 0.4% lower. Australia’s All Ordinaries Index rebounded 5.8% as Australian dollar continued its slide against the greenback.

Brent rebounds

Brent futures prices are rebounding after hitting the lowest in over four years on Monday. Prices ended sharply lower yesterday despite President Trump’s announcement the US will start buying oil at current lower prices to replenish its strategic crude oil reserves. May Brent crude closed 11% lower at $30.05 a barrel on Monday.

Gold climbs as Dollar strengthening reverses

Gold prices are edging higher today. April gold fell 2% to 1486.50 on Monday.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.