SP500, Nasdaq join Dow in bear market
US stock market plunge accelerated on Thursday despite President Trump’s promise of financial relief “for workers who are ill, quarantined or caring for others due to coronavirus,” emergency low-interest loans from Small Business Administration to affected businesses, and deferred tax payments for certain individuals and companies for three months. The S&P 500 lost 9.5% to 2480.64. The Dow Jones industrial average sank 9.98% to 21200.62. Nasdaq composite index tumbled 9.4% to 7201.80. Both SP 500 and Nasdaq Composite joined the Dow in bear market territory, defined as a decline of at least 20% from their recent record intraday maximums. The dollar strengthening accelerated as the Federal Reserve offered some $1.5 trillion worth of funding and announced about purchases of US Treasury notes and bonds to increase its balance sheet: 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 0.9% to 97.50 but is lower currently. Futures on stock indexes are up.
European indexes’ plunge deepened after ECB decision of no rate cut
European stocks drop accelerated on Thursday after European Central Bank decided not to cut interest rates. ECB’s announcement of new measures to support bank lending, including expansion of its quantitative easing (QE) program by 120 billion euros ($135.28 billion), wasn’t sufficient to stem selling pressure . Both EUR/USD and GBP/USD accelerated their declines yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 11% led by travel and leisure shares. Germany’s DAX 30 slumped 12.24% to 9161.13. France’s CAC 40 tumbled 12.28% while UK’s FTSE 100 fell 10.87% to 5237.48.
Australia’s All Ordinaries Index rebounds while Asian indexes fall
Asian stock indices are mostly lower today after steepest losses on Wall Street since the Black Monday crash of 1987. Nikkei ended down 6.1% at 17431.05 despite continued yen decline against the dollar. Markets in China are falling: the Shanghai Composite Index is down 1.2% and Hong Kong’s Hang Seng Index is 1.2% lower. Australia’s All Ordinaries Index however rebounded 4.4% with Australian dollar little changed against the greenback.
Brent rebounds
Brent futures prices are recovering today. Prices accelerated declines yesterday : May Brent crude lost 7.2% to $33.22 a barrel on Thursday.
Gold gains as Dollar slips
Gold prices are edging higher today. Prices fell sharply yesterday: spot gold fell 3.0% to $1589.3 an ounce on Thursday.
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 alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
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.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.