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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

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.