Monetary Stimulus Hopes 

Asian Stocks Rebound On Monetary Stimulus Hopes 

Monetary Stimulus Hopes
Monetary Stimulus Hopes

Asian stocks rebound today on monetary stimulus hopes amid the coronavirus outbreak. A slump in the economic activity due to the coronavirus spread in over 50 countries around the globe has led global stocks to lose over 10% in the previous week.

Wall Street major indices entered correction territory, while crude oil price slumped as the global demand drops.  Bank of Japan and Fed signalled a policy response on Friday while Italy will inject more than 3.5 billion euros in the already battered economy. 

The Nikkei 225 ended 0.95% lower at 21,344. The Shanghai Composite index closed 3.15% higher at 2970. The Singapore FTSE Straits Times closed down 0.11% at 3007. Hang Seng in Hong Kong ended 0.62% higher at 26291. The ASX 200 benchmark hit the lowest level in nine months, giving up 0.77% at 6391. 

European stocks started higher the week. The German DAX is 0.03% higher at 11,895. CAC40 index is 0.34% higher at 5,291, while the FTSE MIB in Milan is 2.04% lower at 21,535. In London, the FTSE 100 is 0.97% higher at 6,643.  

In the commodities markets, crude oil also rebound today, the WTI crude oil is 1.70% higher at $45.52. Brent oil is 0.63% higher at $50.41 per barrel. Gold’s price also rebound today after Friday’s sell-off. The precious metal is 1.50% higher at 1609. The gold outlook is bullish, and the first resistance will be met at $1,689, the recent high, while the support stands at $1,600 the recent low. Silver price is 3.34% lower at $17.15.    

Cryptocurrencies started the week in positive territory trying to stabilize after the recent correction. Bitcoin (BTCUSD) is 2.44% higher at $8,728, hitting the daily low at $8,470 and the daily high at $8,752. Bitcoin’s momentum is neutral now as the number one cryptocurrency is trapped between the 50 and 100-day moving average.

Support for Bitcoin stands now at $8,400, the low from yesterday’s trading session. On the other hand, the first resistance stands at 8752, the daily high and then at 10,495 the yearly top.

Ethereum trades 3.30% higher at 224.51 with capitalization at 24.72 billion. The initial resistance for Ethereum stands at $274.18, February high while the first support stands at $213.47 the February low. Ripple is 3.28% higher at 0.2339. Litecoin (LTCUSD) is 3.89% higher at 59.90. The crypto market capitalization stands now at $250.70 billion.

In the Lookout: The New Zealand Terms of Trade Index came in at 2.6% above expectations (0.8%) in 4Q. 

Australia RBA Commodity Index SDR came in at -6.1% below the forecasts of -5.9% in February.  

The South Korea Trade Balance increased from the previous $0.54B to $4.12B in February. 

Trading Perspective: In the foreign exchange markets, the Aussie dollar is 0.33 higher at 0.6528 against the USD. The US dollar index is 0.45% lower at 97.59. NZDUSD trades 0.20% higher at 0.6257. The USDCHF pair is 0.68% lower at 0.9590.

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