Mar 13 2020 0
What a Friday the 13th! After WHO announced that we're facing a pandemic, dark sky is all over the world. Check out the news about various markets to see what trading strategies you should use today.
Free fall
Asian stocks are expected to suffer heavy losses after the worst Wall Street session since 1987 when investors worried that emergency monetary and fiscal policy packages would not be enough to stop them. stop recession. The S&P 500 has fallen 9.5% and Japan's Nikkei 225 has dropped 8%. The chaos in the global stock market caused Brazil's benchmark index to drop 15% yesterday and Canada's gauge also showed the worst day since 1940. Oil and precious metals both fell. The dollar rose sharply. "The market is still in a free fall because uncertainty cannot create stability in the short term," said Ben Emons, managing director of global macro strategy at Medley Global Advisors in New York."
Elsewhere, Bitcoin plummeted on Thursday, sometimes sinking to $6,000 for the first time since May when the sell-off of cryptocurrencies became a habit in the context of a highly volatile market due to the pandemic. coronavirus cause. Although the situation has not improved, President Donald Trump is trying to make a positive change for all, promising that markets will "recover significantly" after the chaos.
Nobody’s safe
The outbreak of coronavirus has reached a new level. New York City has declared a state of emergency and banned the organization of events of over 500 people (including the closure of theaters on Broadway). The number of deaths in Italy has skyrocketed despite a nationwide blockade. The number of confirmed cases globally has reached 128,393 and the number of deaths is 4,742. The leading US infectious disease official said the testing system in the country was failing. And France will close all schools starting next week when President Emmanuel Macron calls coronavirus the plague of the century. Macron is also expected to speak to President Donald Trump on Friday amid European frustration over a ban on flights the United States has imposed and a heavy blow on airlines.
When the virus spread around the world, no one seemed safe - Tom Hanks and an NBA player tested positive for the disease yesterday. Even President Trump is at risk of contracting the virus after meeting a Brazilian official who tested positive for the virus. All of this is raising serious concerns as to whether the Tokyo Olympic Games should continue in July, but the International Olympic Committee is adamant: The show must continue.
More money
The Federal Reserve is providing more than $5 trillion in liquidity to cool the market. They have increased the amount of cash they have prepared to pump into the funding market next month, totaling over 5 trillion dollars - a signal that officials will do whatever is needed. to keep interest rates up in the short term. During the third increase of the repo schedule this week, the Fed branch in New York yesterday provided $500 billion in a three-month repo operation amid financial impacts from the coronavirus outbreak. is beginning to strain the lending market as well as US Treasury bonds trading.
Australia drops
According to the IG Markets report, by the end of 2020, anxiety about coronavirus and the oil price war could cause Australia's benchmark stock index to drop by 50% from its record level. Kyle Rodda, an analyst at IG Markets in Melbourne, said: "In the worst case scenario, the pandemic will cause a deep recession in the world and the problems in the oil market have caused a credit crisis. US businesses. " He said the S&P/ASX 200 will fall to about 3,500 by the end of 2020. That means it will lose about half of its value from the February 20 high of 7,162,494.
On Wednesday, Australian stocks fell, only 14 trading days after reaching a record, due to a drop in crude oil after a demand shock from coronavirus and affected by the escalating price war among the home. Leading production is Russia & Saudi Arabia. In addition, the European travel ban of President Donald Trump also contributed to the index's decline.
