Futures stumble after Fed slashes interest rate to 0%

Dmitry Lukashov IFC Markets

US stocks bounced back while Trump declares emergency

US stock market bounced back on Friday after President Trump declared a national emergency opening up $50 billion of financing to combat coronavirus outbreak. Sunday night Federal Reserve cut interest rates to 0% and announced $700 billion QE program. The S&P 500 rebounded 9.3% to 2711.02, booking a 8.8% loss for the week. Dow Jones industrial jumped 9.4% to 23185.62. The Nasdaq ended 9.3% higher at 7874.88. The dollar strengthening accelerated as University of Michigan consumer sentiment index declined less than expected. 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% to 98.47 but is lower currently. Futures on stock indexes are down.

FTSE 100 led European stock indexes rebound

European stocks rebounded on Friday. Both EUR/USD and GBP/USD continued sliding on Friday with both pairs higher currently. The Stoxx Europe 600 Index added 1% led by basic resources shares. The DAX 30 edged up 0.8% to 9232.08 Friday. France’s CAC 40 gained 1.8% and UK’s FTSE 100 rose 2.5% to 5366.1.

Australia’s All Ordinaries Index leads Asian indexes plunge

Asian stock indices are lower today after surprise one percentage point rate cut by the Federal Reserve. Nikkei fell 2.5% to 17002.04 as yen resumed its climbing against the dollar. China’s markets are falling after reports China's industrial output, retail sales fell in the first two months of the year: the Shanghai Composite Index is down 3.4% while Hong Kong’s Hang Seng Index is 5.2% lower. Australia’s All Ordinaries Index plummeted 9.7% despite continued sliding of Australian dollar against the greenback.

Brent slips

Brent futures prices are in retreat following 25% plunge last week after Saudi Arabia boosted crude oil production. Prices rose on Friday as President Trump said strategic crude oil reserves will be replenished by purchases at current lower prices: Brent for May settlement added 1.9% to $33.85 a barrel Friday.

Gold rebounds as Dollar weakens

Gold prices are recovering today. Prices fell on Friday as dollar strengthening speeded up. Gold for April delivery lost 4.6% to $1516.70 on Friday.

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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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.