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Morning wrap

  • Chinese indices advance at the start of a new week after China injected short-term funds into the financial system in order to maintain ample liquidity amid coronavirus disruptions. Moods in other parts of Asia-Pacific region are mixed with KOSPI and S&P/ASX 200 trading flat

  • Japanese Nikkei is a top laggard among equity indices during the Asian session. Japan’s GDP contracted 1.6% QoQ in Q4 2019 (exp. -1% QoQ) highlighting the impact of sales tax increase. Industrial production in December dropped 3.1% YoY

  • Number of confirmed coronavirus cases topped 71 thousand. Death toll has risen to close to 1800. 

  • Risk-on moods can be spotted on FX and commodities markets. AUD is top performing G10 currency while industrial metals advance. Gains can also be spotted on the oil market but the scale is much smaller than in case of industrial metals.

  • NZD can be found among G10 laggards after Prime Minister Arden said that coronavirus outbreak is likely to weight on growth in the first half of 2020. New Zealand banned visitors from mainland China and is expected to suffer a drop in tourism revenues

  • The United States will increase tariffs on European aircraft starting from March 18. Tariff rate will be hiked from 10% to 15%

  • Safe havens are taking a step back today with gold and yen moving lower. However, silver is making a significant jump higher

  • US markets will remain shut today for the President’s Day holiday

Silver continues rebound from the support at $17.40. The precious metal gains in spite of declines on the gold market today. Silver is heading towards the upper limit of the trading range at $18.10.

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Morning wrap

  • Moods on the global equity markets are poor following Apple’s warning. The US company said it is not expecting to meet revenue guidance this quarter due to coronavirus supply disruptions and lower demand

  • Nikkei closed 1.40% lower and S&P/ASX 200 dropped 0.16%. HSCEI and Kospi are trading over 1% lower while Dax and S&P 500 futures slide 0.5%

  • China disclosed 1886 new coronavirus cases and 98 deaths. Number of cases surpassed 73,300 worldwide. Death toll stands at 1,874. 12,876 patients recovered from the virus

  • United States are considering new restrictions that would cut Huawei off the global chip supply

  • RBA minutes showed that the central bank was reluctant to cut rates during last meeting as it did not want to encourage additional borrowing amid high housing prices. Interest rates are expected to stay low for an extended period of time

  • AUD, NZD and CAD are top laggards among G10 currencies while CHF and JPY catch a bid. Most of the emerging market currencies decline against USD

  • David Frost, UK chief Brexit negotiator, rejected Brussel’s position that his country should abide by EU rules as a part of a trade deal. Frost said that it is not the point of Brexit

  • Gold is trading higher along with other precious metals. Base metals and crude decline.

  • HSBC reported better-than-expected Q4 pretax profit of $4.3 billion. The Bank said it may cut 35,000 jobs over the next 3 years

Korean index (KOSP200) struggles to maintain an uptrend as it has painted a lower high. The index is pulling back below the 300 pts handle today, threatening to test upward trendline in coming days. 

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Morning wrap

  • Wall Street indices had a strong session yesterday. S&P 500 added 0.47%, Dow Jones gained 0.40% and Nasdaq surged 0.87%. Russell 2000 jumped 0.54% higher

  • Moods during Asian trading hours are upbeat as well. Nikkei closed 0.34% higher and S&P/ASX 200 gained 0.25%. Shanghai composite is trading 1.2% higher

  • Two people from the quarantined cruise ship died in Japan. South Korea informed about 31 new coronavirus cases. On the other hand, Hubei province in China reported only 329 new cases. Death toll has risen to 2,128. Total number of confirmed cases stands at 75,730

  • FOMC minutes hinted at no changes to monetary policy settings for some time. Central bankers expressed concern that inflation is undershooting target persistently. It was proposed to limit the scale of repo operations

  • China’s 1-year loan rate was lowered from 4.15% to 4.05% while 5-year rate was reduced from 4.8% to 4.75%

  • Australian labour market report for January showed unemployment rate rising from 5.1% to 5.3% (exp. 5.2%). Employment change stood at 13.5k (exp. 10k). Aussie weakened after the release and is the worst performing G10 currency at press time

  • USD, CHF and JPY catch a bid amid a spike in coronavirus cases outside China. Gold pulls back slightly but holds near 7-year high

  • Oil is advancing slightly in the morning while industrial metals trade mixed

  • Presidential candidate debate in Nevada saw many of the Democrats trying to picture Michael Bloomberg as Donald Trump of the Democratic Party. However, it did not change much and polls still show Sanders and Bloomberg in lead

Platinum pulls back below the $1000 handle today. The precious metals are taking a high today after yesterday’s strong gains. Platinum tested $980-985 price zone earlier today but managed to recover slightly.

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Morning wrap

  • US indices finished yesterday’s session lower with S&P 500 dropping 0.38%, Dow Jones declining 0.44% and Nasdaq closing 0.67% lower. Moods in Asia are downbeat as well with Nikkei finishing 0.39% lower and KOSPI sliding 1.6%. S&P/ASX 200 finished 0.33% lower

  • Number of confirmed coronavirus cases in China topped 75,000. Total death toll increased to 2,247 while number of recovered patients stands at 18,580. South Korea reported 52 new cases and declared two cities as “special zones”

  • China Commerce Ministry said that it expects most of the foreign firms to resume production by end-February

  • China’s car sales dropped 92% YoY in the first half of February

  • Japan’s CPI inflation for January matched estimates and slowed from 0.8% YoY to 0.7% YoY. However, it is said that if it was not for a recent sales tax hike, the gauge would slow to 0.5% YoY. BoJ inflation target is 2%

  • Flash PMIs from Japan for February showed manufacturing gauge dropping from 48.8 to 47.6 pts while services index dipped from 51 pts to 46.7 pts

  • Flash manufacturing PMI from Australia for February ticked higher from 49.6 to 49.8 pts. On the other hand, services index dropped from 50.6 to 48.4 pts.

  • RBNZ Governor Orr said there is no reason to think that coronavirus impact on NZ economy will be bigger than previously assumed

  • NZD and AUD are G10 top laggards while JPY and CHF lead gains. EM currencies remain stable against the USD. Precious metals gain with gold price topping $1,630

  • Oil and industrial metals decline while situation on grains market is mixed

Korean index (KOSP200) takes a hit today and slumps towards the upward trendline. The trendline has been guiding an uptrend for the past half a year and in case a break below it is delivered, the situation may turn ugly. In such a scenario, the first support to watch can be found at 289 pts. 

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Morning wrap

  • Stocks in Asia are sinking as coronavirus cases outside China surged. S&P/ASX 200 finished 2.25% lower while HSCEI is trading 1.9% lower. KOSPI is top laggard and trades 3.5% down. S&P 500 futures trade 1.4% lower.

  • Number of confirmed coronavirus cases rose to over 79,500. Death toll rose to 2,619. Number of recovered patients stands at 25,077. Number of cases in South Korea increased to 763 while Italy said it has 152 confirmed cases.

  • China began to ease some restrictions in order to get the economy back on the right track. The country has also allowed non-local residents in Wuhan to leave the city in case they are not under quarantine

  • A steep pullback can be observed on the oil market with Brent trading 2.4% lower and WTI sliding 2.3%. Industrial metals trade mixed – zinc and copper declines while lead and nickel advance

  • USD is the strongest major currency on Monday morning. NZD, CAD and AUD are top laggards. Gold is surging on risk-off moods and trades above $1660

  • Bernie Sanders won Demoratic primaries in Nevada with 47.1% support. Joe Biden was second (21%) while Pete Buttigieg was third (13.7%)

  • G20 finance ministers cited the coronavirus outbreak as a risk to global growth. IMF lowered Chinese GDP forecast from 6% to 5.6%

  • New Zealand’s retail sales data for Q4 showed an increase of 0.7% QoQ (exp. 0.8% QoQ)

  • Telegram reports that Boris Johnson is set to start US-UK trade talks in 2 weeks

Korean index (KOSP200) is sinking as the number of confirmed coronavirus cases in the country increased from 10 to over 750 in just a week. The index is eyeing a test of a local swing level at 280.5 pts. In case bulls fail to halt decline there, support zone at 275 pts could be at risk. Source: xStation5

This 

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Morning wrap

  • US indices experienced another steep sell-off yesterday. S&P 500 closed 3.03% lower, Nasdaq dropped 2.77% and Dow Jones declined 3.15%. Russell 2000 plunged 3.45%

  • Moods during the Asian trading session are downbeat as well. S&P/ASX 200 closed 2.31% lower while Nikkei dropped 0.79%. HSCEI declines 0.7% while Shanghai Composite trades 0.3% lower. DAX futures point to a moderate bearish gap at the open

  • Number of confirmed coronavirus cases reached 81,000. However, 30,165 patients have already recovered. Total death toll has risen to 2,764. Number of cases in South Korea topped 1,000. Brazilian patient tested preliminary positive for the virus, what would be the first case in South America

  • Michel Barnier, EU chief Brexit negotiator, gave the United Kingdom an ultimatum. Either the country agrees to Union’s demand on fair competition and fishing or there will be no trade deal

  • Oil trades higher today and WTI is climbing back above $50. Industrial metals pull back

  • Gold and silver pull back while platinum trades higher. Japanese yen is the worst performing G10 currency. USD and CHF are top performers. EM currencies weaken

  • Fed’s Kaplan and Clarida said that it is too early to think of a rate cut as impact from the coronavirus is still uncertain

  • Democratic Party candidates took aim on Bernie Sanders during yesterday’s debate in an attempt to stop his surge in primaries

  • API estimates point to 1.3 million barrel increase in oil stockpiles, smaller than expected.

  • Australia’s construction work done declined 3% QoQ in Q4 2019 (exp. -1%)

Japanese Nikkei (JAP225) made another test of the 200-session moving average today. The index managed to trim some losses by the end of the cash session but still trades over 5% YTD lower. 

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Morning wrap

  • US indices finished yesterday’s session with moderate losses. S&P 500 closed 0.38% lower, Dow Jones dropped 0.46% but Nasdaq gained 0.17%. However, news of the first US case of unknown origin caused S&P 500 futures to plunge 1.5% overnight

  • Risk-off moods can be spotted in Asia-Pacific as well. Nikkei slumped 2.13% while S&P/ASX 200 closed 0.75% lower. HSCEI is trading 0.25% lower while KOSPI is down 0.9%. DAX futures point to massive 2.5% bearish price gap at session open

  • Number of confirmed coronavirus cases climbed to 82,185 while a total of 32,904 people recovered. Death toll has risen to 2,804. Denmark, Greece, Georgia, North Macedonia, Norway, Romania and Brazil confirmed the first cases of the virus. WHO said more new cases emerged in other countries than China for the first time

  • In other coronavirus-related news, the United States set up a coronavirus task force led by Vice President Pence. The group is expected to hold a meeting today at 7:30 pm GMT. Japan announced it found a method to detect coronavirus much quicker

  • Precious metals catch a bid with gold once again trading above $1650. JPY and CHF are leaders among majors while CAD and NZD take the biggest hit. 10-year US yields dropped below 1.3% for the first time in history

  • Commodities pull back with WTI testing $48 handle, the lowest level since early-January 2019. Aluminium drops while copper trades flat

  • Australia’s capital expenditures declined 2.8% QoQ in Q4 2019 (exp. +0.4% QoQ)

  • New Zealand’s trade deficit in January stood at 340 million NZD (exp. 530 million NZD deficit)

WTI made a clear break below the $50 handle yesterday and the way towards late-2018 support at $45 is left open

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Morning wrap

  • Asian equities rebound with US futures after some central banks hinted stimulus may be coming. Nikkei added 0.95%, Shanghai Composite is trading over 3% higher and KOSPI gains around 0.9%. On the other hand, S&P/ASX 200 dropped 0.77%

  • Number of confirmed coronavirus cases exceeded 89 thousand while the number of recovered jumped to above 45 thousand. Death toll has risen to 3,057. Number of cases in South Korea jumped above 4,200 while Italy has over 1,701 cases. United States reported 2 deaths over the weekend

  • Official China PMIs for February gave a glimpse of the impact coronavirus might have on an economy. Manufacturing gauge plunged from 50 to 35.7 pts (exp. 45 pts) while services index dropped from 54.1 to 29.6 pts (exp. 51 pts). Caixin manufacturing PMI dropped from 51.1 to 40.3 pts

  • The Federal Reserve said that the virus poses an evolving risk to the US economy and warned it may act if needed. Meanwhile, Bank of Japan injected liquidity into local markets

  • A widespread rebound can be spotted on the commodity market. Oil is surging over 3% while copper trades over 1.5% higher. Precious metals are catching a bid as well with gold jumping back above $1600.

  • CAD is the top performer among majors, thanks to a rebound in the oil market. JPY, NZD and CHF are top laggards. Most EM currencies trade higher against USD.

  • South Korea’s manufacturing PMI for February dropped from 49.8 to 48.7 pts.

  • Australia’s inventories grew 0.3% QoQ in Q4 2019 (exp. -0.1% QoQ)

  • Japan’s capital expenditures dropped 3.5% QoQ in Q4 2019 (exp. -2.5% QoQ)

Nikkei (JAP225) recovered above 21000 pts handle today as investors give more weight to central bank’s stimulus than poor domestic data. However, the index is almost 2% off the daily highs hinting that bears are still looming on the market

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Morning wrap

  • US indices finished yesterday’s session with massive gains on hopes that G7 leaders will provide fiscal and monetary stimulus. S&P 500 closed 4.60% higher, Dow Jones surged 5.09% while Nasdaq gained 4.49%. Russell 2000 added 2.85%

  • However, Reuters reported overnight that draft G7 statement does not include calls for coordinated rate cuts or fresh fiscal spending. Yen gained on the news and is the top performing G10 currency

  • Stocks in Asia enjoy modest gains. Shanghai composite trades 0.7% higher, KOSPI gains 0.5% while S&P/ASX 200 closed 0.69% higher. On the other hand, Nikkei dropped 1.22%

  • Number of confirmed coronavirus cases jumped to 90,933. Number of recovered patients stands at 48,175. Death toll has risen to 3,119. Cases started to emerge in major Western World cities, like Brussels, Berlin or New York. US city of Redmond in Washington state declared state of emergency 

  • Governments in Japan, UK, Australia and South Korea prepared emergency measures aimed at fighting the spread of the virus. Pharmaceutical companies said that treatment will be ready within months while vaccine should be developed by next year

  • The Reserve Bank of Australia decided on an emergency 25 basis point cut. Aussie strengthened in a knee-jerk move as it was rumoured that the Bank may cut 50 basis points

  • Amy Klobuchar and Pete Buttigieg resigned from presidential run. Both politicians expressed their endorsement for Joe Biden

  • Gold and silver catch a bid amid slightly sell-off in US futures. Most industrial metals trade flat. Cotton advances

  • Oil continues to gain and trades over 1% higher today. Crude gains on hopes that OPEC will decide on a 750kbpd output cut later this week

  • Australia’s building approvals dropped 11.3% YoY in January (exp. +2.4% YoY)

Dow Jones made the biggest one-day jump yesterday measured in points. The index tested the resistance at 26700 pts but failed to break above it. A pullback can be observed today on futures market

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Morning wrap

  • The Federal Reserve unexpectedly cut interest rates by 50 basis points yesterday. The move caused Wall Street indices to surge but those gains were later erased. S&P 500 finished session 2.81% lower, Dow Jones dropped 2.94% while Nasdaq declined 2.99%.

  • Moods in the Asia-Pacific region are mixed. Nikkei closed 0.08% higher while S&P/ASX 200 dropped 1.71%. Kospi is trading over 2% higher while HSCEI gains 0.45%.

  • Number of confirmed coronavirus cases increased to 93,191. However, the number of recovered stands at 50,976. Death toll increased to 3,203. Number of US fatalities increased to 9.

  • Hong Kong Monetary Authority followed into Fed’s footsteps and delivered a 50 basis point rate cut in order to limit coronavirus damage. South Korea unveiled $9.8 bonus budget to help companies impacted by the virus

  • China’s Caixin services PMI dropped from 51.8 to 26.5 pts in February (exp. 48 pts). Hong Kong PMI dropped from 46.8 to 33.1 pts in February

  • Australia’s Q4 GDP report showed growth of 0.5% QoQ (exp. 0.4% QoQ). Aussie caught a bid and is one of the best performing G10 currencies.

  • Yen and Swiss franc pull back while gold and silver are little changed. WTI continues to gain and is testing $48 handle

  • No clear winner emerged in Democratic “Super Tuesday” according to partial results. Bernie Sanders won in California and 3 other states while Joe Biden won in 8 smaller states. However, results from Texas are yet to be known

Coronavirus continues to spread worldwide with 46 countries other than China reporting new cases yesterday. Number of cases continues to rise as well.

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Morning wrap

  • US indices finished yesterday’s session with massive gains after the Bank of Canada rate cut raised hopes of coordinated monetary policy action. S&P 500 closed 4.22% higher, Dow Jones added 4.53% and Nasdaq gained 3.85%.

  • US futures are trading lower in the morning after California declared state of emergency due to coronavirus. Earlier US House of Representatives approved $7.8 billion virus-related spending package

  • Stocks in Asia are trading higher. Nikkei closed 1.09% higher, Kospi gains 1% and HSCEI is trading 1.7% higher. S&P/ASX 200 closed 1.11% higher

  • Number of confirmed coronavirus cases jumped to 95,488. A total of 53.689 people have recovered. Death toll has risen to 3,286. Japan decided to quarantine all arrivals from China and South Korea. Italy decided to close schools in the country until March 15.

  • Incoming BoE Governor Bailey told Parliament that central bank will work closely with Treasury to withstand virus fallout

  • Michael Bloomberg ended his presidential run and endorsed Joe Biden

  • Australia’s trade balance for January showed a surplus of A$5.21 billion (exp. A$4.8 billion)

  • JPY and NZD are top performing major currencies while CAD is the top laggards. USD weakens against most major peers but strengthens against EM currencies.

  • Oil advances ahead of OPEC meeting in Vienna. Output cut looks like a done deal but it is uncertain how big the cut will be

  • Gold and silver pull back while industrial metals advance. Soybean gains.

Number of new cases reported outside China has been smaller yesterday than the day before. However, the outbreak is getting more widespread as 48 countries other than China reported new cases. Source: worldometers, XTB Research

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Morning wrap

6:39 AM March 6, 2020
  • US indices finished yesterday’s session significantly lower and erased gains from the day before. S&P 500 dropped 3.39%, Dow Jones slumped 3.58% and Nasdaq declined 3.10%. Russell 2000 closed 3.42% lower

  • Number of confirmed coronavirus cases climbed to 98,429. Death toll has risen to 3,387. Number of new cases exceeded the number of new recoveries for the first time since February 17. Number of cases in the United States climbed to 226. New York Times reported that over 2,700 people are self-quarantined in New York. US Vice President Pence admitted that the country does not have enough testing kits

  • Moods in Asia are poor. Nikkei dropped 2.72%, Kospi and HSCEI are trading 2% lower while S&P/ASX 200 slumped 2.8%. DAX and US futures are pulling back as well

  • Gold inches higher along with the Japanese yen. However, other precious metals are trading lower

  • Oil jumped yesterday on news that OPEC may be willing to reduce output by 1.5 million barrels. The decision is conditional on Russia. However, crude pulled back as coronavirus fears returned

  • Industrial metals and agricultural commodities are pulling back

  • Elizabeth Warren ended her presidential race after a poor performance in Super Tuesday primaries. She did not endorse any of the other candidates yet

  • Japan’s real wages increased 0.7% YoY in January (exp. -0.6% YoY). Household spending dropped 3.9% YoY (exp. -4% YoY)

  • Australia’s retail sales dropped 0.3% MoM in January (exp. 0.0% MoM)

Number of countries reporting new coronavirus cases surpassed 50 yesterday for the first time. Number of new cases reported on March 5 exceeded the number of new recoveries for the first time since February 17. Source: worldometers,

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Black Monday 2?

6:13 AM March 9, 2020

Saudi Arabia slashed its crude price and possibly launched a price war with Russia after OPEC+ talks broke down on Friday. WTI is trading nearly 30% lower against Friday’s close! Collapse in the oil market was a catalyst for big moves on stock exchanges with S&P 500 futures trading nearly 5% lower and DAX futures sinking 5.5%! Are markets set to repeat a historic Black Monday?

Oil price collapse triggered big moves on stock markets. US500 drops almost 5% today and is approaching the key price zone ranging between 2800 and 2815 pts.

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Morning wrap

  • Saudi Arabia cut the price of its oil and started a possible price war with Russia. The move came after OPEC+ failed to agree on output cuts on Friday. Moreover, recent report say that Saudi Arabia may boost its output above 10 mbd

  • WTI price plummeted below $30 per barrel and is trading around 28% below Friday’s closing price. 

  • Oil price collapse was a catalyst for big moves on stock markets as well. S&P 500 futures are trading 4.9% lower while DAX futures drop 5.5%. Nikkei closed 5.07% lower, S&P/ASX 200 finished today’s session 7.3% down and HSCEI is sliding 4%.

  • Yen is in demand and gains over 2.5% against USD. CHF and EUR are catching a bid as well. AUD, NZD and CAD are top laggards among majors. Big moves can be also spotted on EM currencies with ZAR losing 3.6% against USD and MXN dropping 5.1% against greenback

  • US Treasuries continue to soar pushing yields even lower. 30-year US yield dropped below 1% putting the entire yield curve below 1% for the first time in history. Gold jumped above $1500 for a brief moment

  • Number of confirmed coronavirus cases topped 110,00. Death toll has risen to 3,831. Number of cases in Italy rose to 7,375. Germany and France have over 1,000 cases each.

  • Italy decided to impose a lockdown on Milan region. The area is inhabited by over 15 million people and is a key economic zone in the country. A total of 8 US states announced State of Emergency, including New York

  • Trump administration is said to be drafting measures to ease economic fallout from the virus

  • Japan’s economy contracted 1.5% QoQ in the final quarter of 2019 (exp. -1.3% QoQ)

Coronavirus continues to spread around the world. However, the number of new cases outside China reported on Sunday was smaller than the day before

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Morning wrap

  • US indices finished yesterday’s session with heavy decline following oil market crash. S&P 500 closed 7.6% lower, Dow Jones dropped 7.79% and Nasdaq declined 7.29%. Russell 2000 finished 9.37% lower

  • Moods are better during Asian trading hours thanks to rebound in oil and hopes of stimulus in the United States. WTI jumps 8% and trades above $33.50 while US President Trump said that he will hold a press conference on measures aimed at limiting virus impact

  • Nikkei closed 0.85% higher while S&P/ASX 200 finished 3.11% higher. KOSPI gains 0.5% and HSCEI trades 2% higher

  • Number of confirmed coronavirus cases increased to 114,458 while the number of recovered stands at 64,100. Death toll has risen to 4,027. There are already 7 countries with over 1,000 confirmed cases. Italy extended lockdown nationwide and urged citizens to stay at home as number of cases in the country surpassed 9,000

  • More institutions report coronavirus cases among their members. NATO and ECB confirmed their employees tested positive for the virus. French Culture Minister and Riksbank Deputy Governor are infected as well

  • Chinese President Xi visited Wuhan city in an attempt of showing that the country has defeated coronavirus outbreak

  • Yen is making a massive pullback amid improvement in moods. USDJPY attempts to break above 104.50. CAD is benefiting from oil rebound while USD jumps on bounce in yields

  • Gold pulls back, silver trades flat while platinum advances. Industrial metals gain along with agricultural commodities

  • China’s CPI slowed from 5.4% to 5.2% YoY in February, in-line with expectations

  • Preliminary machine tool orders data from Japan showed a drop of 30.1% YoY in February

Number of confirmed coronavirus cases continues to rise but the number of countries reporting new cases declined as of late. 

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Morning wrap

  • US indices finished yesterday’s session significantly higher based on stimulus hopes that President Trump pitched a 0% payroll tax rate that would last until the rest the year. Investors also welcomed the fact that White House declared that it will help the cruise line and airline industry and that health insurance companies will waive all co-pays on coronavirus testing and Medicare and Medicaid will cover coronavirus treatments. The Dow Jones gained 4.89% , the S&P 500 spiked 4.94% and the Nasdaq rose 4.95%.
  • Moods were worse during Asian trading. WTI gained 1.25% and trades above $37.92 Nikkei closed 2.27% lower while S&P/ASX 200 declined 3.60%. KOSPI went down 2.78% and HSCEI dropped 0.84%
  • Number of confirmed coronavirus cases increased to 119,235 while the number of recovered stands at 66,577. Death toll has risen to 4,300. There are already 8 countries with over 1,000 confirmed cases.
  • US dollar tried to recover from recent losses against other major currencies as volatility returns to the markets. The 10-year Treasury yield spiked at some point 25-basis points and is looking forward to test the 0.8% level, which also helped US Dollar price recovered some ground.
  • Gold pulled back risky assets rebound, silver trades flat during Asian session. Industrial metals fell slightly together with agricultural commodities
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Morning wrap

  • Donald Trump announced a ban on travel from Europe for 30 days. The decision triggered a massive plunge on stock markets. US futures dropped 4% and trade at the lowest level since January 2019. DAX futures plunged below 10,000 pts

  • Moods in Asia are poor as well. Nikkei closed 4.4% while S&P/ASX 200 dropped 7.36%. HSCEI is trading 3.6% lower. Oil is taking the hit as well with WTI pulling back to $31.60

  • World Health Organization declared the coronavirus outbreak a pandemic. Number of confirmed cases topped 126 thousand while the death toll increased to 4,634. Italy decided to shut all commercial activities with exception of groceries and pharmacies after cases in the country surged to over 12,000.

  • Australia announced fiscal stimulus plan worth A$17.6 billion aimed at boosting the economy amid coronavirus outbreak

  • JPY and CHF are top gainer among majors as risk-off flows dominate. AUD, NZD and NOK are the weakest. ZAR and MXN weaken against USD

  • Industrial metals decline along with agricultural commodities. Weakness can also be spotted on the precious metals market

  • CME announced it will close its trading floor in Chicago at the end of Friday’s session citing coronavirus risks

  • 2 US and 1 UK soldier died in the missile attack on a military base in Iraq yesterday

Coronavirus is nowhere near being contained with the number of new cases surging yesterday. WHO decided to declare a pandemic. Source: worldometers, XTB Research

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Morning wrap

  • Wall Street had the worst session since 1987 yesterday. S&P 500 closed 9.5% lower, Dow Jones dropped 9.99% and Nasdaq slumped 9.43%. Russell 2000 dropped 11.18%

  • Moods in Asia are poor as well but stock indices are trading off the daily lows. Nikkei closed 6.08% lower while HSCEI is trading 2.8% down. Australian S&P/ASX 200 made a stellar recovery and turned an 8% drop into a 4.5% gain. S&P 500 futures trade 40 point above yesterday’s close

  • Number of confirmed coronavirus cases continues to increase and has reached 134,806. Death toll is nearing 5,000. Yesterday was the day with the most new cases reported (spare for the day with China’s methodology shift) and the most deaths since the coronavirus outbreak started

  • New York City declared a state of emergency. UK authorities said they are now trying to delay the worst rather than contain the spread of the disease. More and more regions decide to shut down schools

  • Sophie Turdeau, wife of Canadian Prime Minister, tested positive for the coronavirus. Justin Trudeau will spend 2 weeks in self-isolation. Brazilian President Bolsonaro is also monitored for the virus

  • China said that work resumption rates, excluding Hubei province, vary from 60 to 95%. Apple said all of its stores in China has reopened

  • US forces conducted missile strikes on Iranian-backed militia in Iraq. The move seems to be response for recent attack on military base hosting Western troops

  • President Trump said he will consider restricting travel within the United States in case regions are badly hit by the virus

  • Bank of Canada announced term repo operations to boost liquidity

  • Italian financial watchdog imposed short selling restrictions on some stocks

  • AUD and NZD are top performing major currencies while JPY, GBP and USD underperform the most. EM currencies recover.

  • Oil is trading higher this morning while industrial metals trade mixed. Gold attempts to move back near the $1600 handle after yesterday’s drop.

  • Cryptocurrencies experienced epic crash over the previous two days. Two-day price drop for Bitcoin extended to over 50% earlier today. However, the coin tries to regain some ground

New coronavirus cases surged yesterday, especially in Italy. More and more countries decide to implement preventative measures, like shutting down schools.

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xtb
Posts: 75
 xtb
(@xtb)
Trusted Member
Joined: 3 months ago

Morning wrap

  • The Federal Reserve delivered an emergency 100 basis points rate cut over the week. The Bank also reduced the reserve requirement ratio to 0%. QE programme amounting to $700 billion was also announced. Fed will not hold a meeting later this week

  • Investors panicked after Fed’s move. S&P 500 futures are trading limit down (-5%), DAX futures point to over 4% drop at open. S&P/ASX 200 closed 9.7% lower, the biggest one-day drop since June 1992. Nikkei closed 1% lower.

  • The Bank of Japan moved its policy meeting from Thursday to today. Japanese policymakers double the target for net ETF purchases and introduce a lending program for businesses hit by the epidemic. Elsewhere, RBNZ cut rates by 75 basis points

  • Number of confirmed coronavirus cases is nearly 170,000. Death toll has risen to over 6,500. Number of deaths in Europe surpassed 2,000. A total of 13 countries reported over 1,000 cases, including 9 European countries.

  • New York City allows bars and restaurants to conduct only take-out and delivery services. Los Angeles also ordered closure of restaurants, bars and nightclubs. Apple closed all its stores outside China. US CDC recommends postponing any gatherings of over 50 people.

  • Chinese industrial production dropped 13.5% YoY in January-February period. Retail sales were 20.5% YoY down while investments dropped 24.5% YoY. In each case results were much worse than expected.

  • The United States is mulling whether to take advantage of low prices and stock up strategic reserves with 77 million barrels of oil.

  • Japanese yen, British pound and Swiss franc are leaders among G10 currencies while Norwegian krone, Australia dollar and Canadian dollar lead losses. Most of EM currencies decline against USD

  • Gold, silver and platinum advance. Oil pulls back with Brent testing $32 handle. Industrial metals drop with copper being top laggard.

Number of new coronavirus cases surged over the weekend. Sunday was the first day when over a hundred countries reported new cases. Death toll in Europe has surpassed 3,000.

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xtb
Posts: 75
 xtb
(@xtb)
Trusted Member
Joined: 3 months ago

Morning wrap

  • US indices had one of the worst session in history yesterday. S&P 500 dropped 11.98%, Dow Jones declined 12.93% and Nasdaq slipped 12.32%

  • Moods are somewhat more upbeat during Asian trading hours as investors are pleased with governments taking actions to mitigate impact of pandemic. Nikkei closed 0.06% higher while S&P/ASX 200 surged 5.83%. Kospi is trading 2.4% lower while HSCEI drops 1.1%

  • New Zealand announced a $7.3 billion fiscal package aimed at supporting the economy and boosting confidence. The stimulus amounts to 4% of the country’s GDP.  There is also a growing talk that the United States will unveil stimulus package worth “hundreds of billions”

  • White House issued guidelines for the next 15 days. The administration recommended working from home, avoiding non-essential gatherings and shutting schools. However, it is up to individual states whether to follow the guidelines

  • US House of Representative passed coronavirus bill and sent it to the Senate

  • Canada and the European Union decided to shut its borders yesterday

  • Italy approved a €25 billion package aimed at improving the country’s health system and helping businesses

  • RBA minutes showed that the bank is ready to deliver more rate cuts in order to ease the impact of coronavirus on the economy. The bank will announce next steps on Thursday 

  • NOK and SEK are top performing G10 currencies while AUD, NZD and JPY weaken. EM currencies try to regain some ground

  • Oil is trading higher along with copper while gold and silver pull back. Soybean advances

Number of new cases reported outside China remained almost unchanged from Sunday to Monday. On the other hand, number of countries reporting new cases continues to rise

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