In Asian trading on Friday (March 13), after the overnight plunge of us stocks into a bear market, a circuit breaker was triggered in Asian markets today: South Korea’s KOSPI index fell 8%, triggering a circuit breaker. The Philippine stock index fell 10% and the Philippine stock exchange suspended trading. Dow Jones index futures triggered a circuit breaker. Indonesia’s stock index fell 5%, triggering a circuit breaker.
Spot gold failed to attract safe-haven buying amid a growing sense of crisis and instead continued to fall, briefly approaching the $1,550 mark on the day.
After plunging as much as nearly $90 in the session, gold continued to retreat after hitting a high near $1,650 in early trading, falling as far as $1,560 before closing near $1,576, down nearly 4 percent on the day.
Fears of a new outbreak triggered an avalanche of selling that sent Wall Street’s “fear index” to its highest level since the financial crisis on Thursday. The Cboe volatility index.vix posted its biggest-ever one-day gain.
Global markets sold off sharply overnight, with the s&p 500 falling below 7 percent in the first 10 minutes of trading, triggering the third circuit breaker in us history and the second this week. Stocks rallied in the afternoon after the New York fed unveiled a rescue plan worth more than $100 million, but fell again late in the day.
By the close, the dow was down 2,352.30 points, or 9.99%, at 21,200. The NASDAQ fell 9.43% to 7,201.80. All three indexes fell into the bear market territory.
According to incomplete statistics, on March 12, the us stock market, the Thai stock market, the Philippine stock market, the Korean stock market, the Pakistani stock market, the Indonesian stock market, the Brazilian stock market, the Canadian stock market, and more than a dozen other countries stock market circuit breaker, can be described as a record.
Peter Schiff, a veteran Wall Street prophet and chief executive of Euro Pacific Capital, said on Thursday (12 March) that the new coronavirus would trigger a recession bigger than the 2008 financial crisis because of high debt levels.
‘the fundamental problems in our economy are worse now than they were in 2008,’ Schiff said. “The financial crisis in 2008 was caused by a drop in real estate prices. This time it was caused by a coronavirus. It was not the pin that caused the crisis. It was the bubble. It was the debt. “We had a crisis in 2008 because of debt, and we have more debt now, which will lead to a bigger financial crisis.”
Schiff added that the bear market has already started, the recession could start this quarter and economic data could be revised.
Analysts said panic selling had seeped into the precious metals market as fears of a new virus outbreak intensified, as investors sold gold to make margin calls on other assets.
Notably, at one point during the 2008 financial crisis, gold prices fell about 20%. Now, with market liquidity drying up, the dollar is up.
“It’s a race to cash out,” said David Meger, director of metals trading at High Ridge Futures. “it’s a little panicky. “What we are seeing is market participants and investors selling every asset class indiscriminately.”
“People are unwinding their gold and silver positions to finance their equity positions or whatever,” he added.
On the daily chart, the us index in the overnight high fall continues to hover low, trading at 97.55 near the level of concern can break through the 200-day average. On the technical side, the MACD green kinetic energy column is weakening, the RSI index is hovering around 50, and the KDJ random index continues to rebound from the oversold level, with short-term or further gains.
On the four-hour chart, the dollar index continued to rebound from the low of 94.63, the previous day to break through the 98, the highest touched 98.30 level, focus on whether to break through the 100 moving average. MACD red kinetic energy column steady, RSI index and KDJ random index are hovering below the overbought level, short or continue to shock.
On the daily chart, gold remained under pressure after four days of heavy losses, hitting a low near 1550 on the day and approaching the key 100-day daily support level of 1535.50. From the technical perspective, the MACD green kinetic energy column expands sharply, the RSI index drops below the 50 levels, and the KDJ random index drops below the 50 levels, with the possibility of further decline.
On the 4-hour chart, gold has clearly peaked, has continued to fall after hitting a high of $1,703, and has now lost all support to its next key support of $1,547. On the technical side, the MACD green kinetic energy column continued to expand, the KDJ random index hit the oversold level downward, short – term bears in the upper hand.
fundamentals Positive factors :
- The wife of Canadian prime minister Justin Trudeau has tested positive for a new coronavirus, the Canadian government said.
- By Thursday’s close, the dow was down 2,352.30 points, or 9.99%, at 21,200. The NASDAQ fell 9.43% to 7,201.80. All three indexes fell into the bear market territory.
- In a speech on Thursday, President Trump announced that the United States will ban all visitors from Europe for the next 30 days. He said the UK would not be bound by it.
- The director-general of the world health organization (who), tan desai, said Thursday that the new pneumonia outbreak has acquired the characteristics of a pandemic.
Fundamental negative factors:
- The United States will exclude Chinese disposable masks, disposable surgical masks, disposable stethoscopes and disposable shoe and boot covers from the tariff list, the ustr said in a statement.
- According to statistics from the national health commission, from 0:00 to 24:00 on March 11, 8 new cases were confirmed in hubei province, among which 8 cases were confirmed in wuhan, and the number of new cases was 0 for 7 consecutive days in hubei except wuhan.
- In a post on the social networking site on Wednesday, trump said he was fully prepared to use all the resources necessary from the federal government to deal with the new coronavirus outbreak. Mr Trump’s comments have been accused of trying to calm market fears of a rapidly spreading outbreak.
- Treasury secretary Steven mnuchin told lawmakers on Wednesday that the White House is studying measures such as tax breaks, loan guarantees, compensation for workers’ lost wages, assistance to small and medium-sized businesses, and support for airlines, hotels and other travel companies.