Mar 11 2020 0
After the gloomy days on the market, the biggest markets in the world are taking different ways to deal with economic problems. It's our job to check out all the updates on those market and find out the most suitable forex trading strategies.
Unstoppable
Robert Redfield, director of the Centers for Disease Control and Prevention, said at a hearing in Washington: "The Coronavirus is likely to spread through certain areas of the United States and the White House will offer a plan. "We can prevent and reduce the spread in general. In some areas, we can minimize the effect." However, the White House's decision to come up with a plan turned out to be an acknowledgment that efforts to track and prevent individual cases have failed in some places and the Coronavirus is spreading from person to person.
New York has become one of the first US states to try to restrict the movement of adult groups, while Italy is trying to issue a national ban on / out of the country when the number of cases has reached 10,000 cases. In the United States, Health Minister Nadine Dears has been diagnosed with a virus infection. Globally, 117,000 cases have been recorded and more than 4,200 deaths have been recorded. Yesterday, President Xi Jinping visited Wuhan - the epicenter of the virus for the first time since the outbreak. This is a sign that China has control of this virus.
Finally, a comeback
Yesterday, US stocks recovered from the worst drop since the financial crisis. Before the Asian session opened, the futures market in Japan, Hong Kong and Australia increased slightly, and the US futures market slumped at the beginning of the session. 10-year Treasury Bond yields soared above 0.8% after plunging Monday and the yen fell below 105/USD. Oil prices have stabilized after an increase of 10%. The Trump administration's expectation of taking stimulus measures to cope with the economic impacts of the Coronavirus will create a major turning point for Wall Street since 2018.
The S&P 500 has increased by nearly 5 % at the end of the volatile trading day. President Donald Trump and his administration are considering measures including cutting payroll taxes and assisting struggling businesses such as airlines and tour operators. However, not everyone believes that recovery will go along with those measures. Goldman Sachs strategists expect the stock market to recover strongly from the worst sell-off since the 2008 financial crisis, but it only recovered after suffering many previous losses.
Emergency?
Emergency interest rate cuts are emerging in Asia as the Coronavirus continues to bring down economies in the region. Central banks across Asia Pacific must now consider whether to wait for the next scheduled policy meetings or to respond earlier to global risks from the outbreak of micro withdrawal as well as the decline in oil prices. There is no central bank in Asia to cut emergency interest rates like the Fed's action last week, but some best forex brokers have pumped more liquidity into the market. There are still a few weeks to go before India, South Korea and Malaysia's policy meeting, but analysts still expect these countries to be key candidates in off-schedule interest rate decisions. submission is scheduled. It also depends a lot on whether the global market will grow and whether credit conditions will be easy. Elsewhere, lower interest rates in China are making bank shares more attractive than ever in history.
Offense is a type of defense
China is defending to protect its economy. Chinese President Xi Jinping has redesigned China's foreign policy since taking power, calling on diplomats to expand global reach to new international organizations and propose. a worldwide infrastructure program for hundreds of billions of dollars. But since the Coronavirus wreaked havoc on China, alienating Chinese tourists and reevaluating its supply chain, diplomats have been playing defensive style to defend the country's rear. It mainly serves two purposes: Firstly, restoring the country's reputation among foreign companies that produce and supply domestic goods; Second, ensure the maintenance of power for the Communist Party.
A huge amount of money
The largest hedge fund manager in India is hoarding cash while the market is selling off. According to the fund, it is still too early to fall free in the national stock market because of global risks and local financial woes. Vaibhav Sanghavi, who helped oversee the company's funds as chief executive, said: "Avendus Capital Public Markets Alternate Strategies has halted investments to increase its cash holding ratio to its highest level in a few years. by." However, he declined to disclose the percentage of assets under management held in the form of cash. On Monday, the S&P BSE Sensex - the national benchmark stock index - has plunged the most since August 2015, while the volatility index for local stocks rose to its highest level in more than five years.
