Global markets suffered another wild night on Thursday, with Wall Street closing down sharply again, with the dow Jones industrial average falling nearly 1,200 points, its biggest one-day drop. Fears of an escalating global outbreak and the IMF’s decision to cut its global growth forecast sent the dollar tumbling, falling to 98.35, while spot gold rose slightly to close near $1,645, awaiting further stimulus.
On Friday, watch the U.S. PCE price index, the University of Michigan’s consumer confidence index and other data, as well as federal reserve economist Alan meester’s speech.
Fx: eur/usd at 1.0998; GBP/usd closed at 1.2884; Australian dollar closed at 0.6568 usd; Usd/jpy 109.60; Usd/cad closed at 1.3389; Dollar/Swiss franc closed at 0.9673
Commodities: spot gold at $1, 644.60 / oz; Comex gold closed at $1,642.50 an ounce; Spot silver at $17.75 an ounce; Comex settled at $17.735 an ounce; Brent closed at $52.18 / BBL; NYMEX crude closed at $47.09 a barrel.
In the currency market
The euro/dollar closed at 1.0974 in New York and continued to recover during the session, ending trading around 1.1000. Technically, the MACD red kinetic energy column is steadily stretching, and the KDJ index is deep into the high level, indicating that the short-term rebound momentum of the exchange rate is still being released. The initial resistance to the upward movement of the exchange rate is 1.1045, the further resistance is 1.1090, and the key resistance is 1.1174. The initial support for the decline of the exchange rate was 1.0916, further support was 1.0831, and the more critical support was 1.0786.
GBP/USD: this session opened at 1.2873, rose moderately during the session, and was last trading around 1.2885. From a technical perspective, the MACD green kinetic energy column is basically flat, the KDJ index points below the Central Line, indicating that the recent downward pressure on the exchange rate is still large. The initial resistance to the upward movement of the exchange rate is 1.2934, the further resistance is 1.2983, and the more critical resistance is 1.3021. The initial support for the decline of the exchange rate is located at 1.2847, further support is located at 1.2810, and more critical support is located at 1.2760.
Usd/jpy: the session opened at 109.90 and was heavily pressured during the session before trading around 109.53. From a technical point of view, MACD green momentum column expanded significantly, KDJ index down into the oversold area, suggesting that the exchange rate downward momentum remains strong. The initial resistance to the upward movement of the exchange rate is at 110.17, further resistance is at 110.76, and the more critical resistance is at 111.06. The initial support for the decline of the exchange rate is at 109.27, further support is at 108.97, and the more critical support is at 108.38.
The stock market
Us and European stocks: European stocks closed sharply lower on Thursday as the rapid spread of the new coronavirus weighed heavily on sentiment. The pan-european stoxx 600 index temporarily closed down 3.6%, more than 10% from its record high on Feb. 19 last year, officially in correction territory. It also hit a four-month low, while all major indexes fell sharply.
Us stocks fell sharply on Thursday as investors worried that a new coronavirus could be spreading in the us. Warnings from a number of companies and analysts about the virus dragged major stock indexes lower into correction territory. The dow Jones industrial average tumbled 1,190.95 points, or 4.4%, to 25,766.64. The s&p 500 fell 4.4 percent to 2,978.76 and the NASDAQ fell 4.6 percent to 8,566.48.
The bond market
On Thursday, the yield on the benchmark 10-year Treasury note neared a record low as concerns about the impact of the coronavirus continued to plague global financial markets. The yield on the 10-year Treasury note fell 3 basis points to 1.28 percent after falling below 1.25 percent for the first time earlier in the session. The yield on the 30-year Treasury note fell two basis points to 1.77 percent.
International spot gold opened at $1, 640.16 an ounce Thursday morning in Asia before continuing to rise slightly. In early trading in Europe, gold prices fell back to near their opening levels before continuing to rise again from their lows. Gold accelerated its rally to a fresh session high of $1,660.10 an ounce at the start of the day, but the rally failed to last as bears launched a fierce attack that saw gold fall all the way to a low of $1,665.20 an ounce before recovering from that low to close at $1,644.60.
COMEX gold for April delivery closed down 60 cents, or 0.04 percent, at $1,642.50 an ounce.
U.S. crude WTI for April delivery fell $1.64, or 3.4 percent, to $47.09 a barrel on Thursday, its lowest close since early January. Brent crude for April delivery closed down $1.25, or 2.3 percent, at $52.18 a barrel on Thursday, its lowest close since December 2018. As the disease continues to worsen in many parts of the world, market panic is spreading fast and risky assets such as crude oil are in tatters. U.S. WTI crude hit an intraday low of $45.88 a barrel, while Brent hit an intraday low of $50.97.