Mar 04 2020 0
The markets worldwide are heading to a gloomy months as the new virus threatens all fields. However, us forex traders consider it an opportunity to strike big on the forex market. We just need to watch carefully how things are going to turn out and pick the suitable trading strategies. So let's check out the latest updates for today.
A bearish market
Today, Asian stocks are likely to continue to fall after the Federal Reserve urgently cut interest rates, causing Treasury Treasuries to skyrocket and US stocks to fall on fears that the action will not be enough to withstand the attack. economic success from Coronavirus. The yen and gold soared. Futures markets in Japan, Hong Kong and Australia fell as regional equities ended the two-day gain. The S&P 500 index dropped nearly 3% after the Fed cut 50 basis points and President Powell commented that the virus outbreak will influence the action "for a while".
The yield of 2-year Treasury Bonds fell below 0.65%, while the 10-year yield dropped below 1% for the first time. The dollar fell, while Australian bonds rose. Elsewhere, oil prices rose for a second day after the OPEC+ committee proposed cutting deeper supplies to compensate for the declining demand from the spread of the virus.
The Federal Reserve has cut interest rates by half a percentage point as the first emergency move since the 2008 financial crisis amid concerns that the Coronavirus epidemic is likely to hinder expansion. economy of the United States. Taking place between regular central bank meetings, the rate cut was announced hours after the G7's chief financial officers held a rare remote meeting to pledge to do it all. what can be done to combat the ongoing health crisis. "My colleagues and I took this action to help the US economy stay strong," said Powell, chairman of the Fed, at a hurriedly convened press conference in Washington, "The spread of the Coronavirus has brought new challenges and risks to economic prospects." After rising earlier in the week, the S&P 500 fell more than 3% while the yield for 10-year Treasury Bonds fell below 1%. Traders are betting that the Fed will have to take more action, possibly loosening in pricing futures markets later this year.
Across the United States, the Corona virus has spread so much that experts think the harsh restrictions on domestic travel may not be effective. Even the outbreak can still have a large impact on transportation even when people choose to stay at home and transit employees call for sick leave. This could eventually cause more damage than good. In fact, several studies have shown that travel restrictions are only valid for a limited time. Michael Osterholm, director of the Center for Research and Policy on Infectious Diseases at the University of Minnesota, said: "When you're dealing with the transmission of a virus, it's similar to trying to control the wind. People may want to try to limit their contact time in large crowds, but I think limiting movement within the country won't help at all."
At least 100 cases of Coronavirus infection have been recorded in the United States; Six confirmed virus-related deaths in Washington state, mostly around a nursing home. Meanwhile, Apple has now restricted employees from traveling to Italy and South Korea as the virus continues to spread. The number of people infected with the virus globally has reached 90,441 and the number of deaths has increased to 3,123.
Biotech beats bank
The Australian stock benchmark index had a new leader: A biotechnology company that manufactures therapeutic products from human blood. With a market value of AU $142 billion (US $93 billion), CSL Ltd. currently accounts for 8.2% of the S&P/ASX 200 Index, compared to 8.1% of the Commonwealth Bank of Australia (CBA). The Melbourne-based company took the lead before the central bank of Australia cut its prime rate, causing its shares to fall. The failure of the CBA is remarkable in a market dominated by banks. All four major national lenders - CBA, Westpac, Australia & New Zealand Bank and National Australia Bank - account for about one-fifth of the S&P / ASX 200 index. CSL will collect plasma from people donate and turn it into a therapy for patients with autoimmune disorders or blood clotting problems. They also produce flu vaccines.