Cryptocurrencies remain under pressure and Asian stocks plunged on Monday amid renewed tensions between USA and China as U.S. Secretary of State Mike Pompeo said there was a significant amount of evidence that the new coronavirus emerged from a Chinese laboratory in Wuhan. Investors dump risky assets and shift their attention to safe-haven assets such as gold and Japanese Yen. An escalation of the tensions will further damage the already battered global economy.
The Hang Seng index ended 4.18% lower at 23,613, while Sensex was 5.94% lower at 31,715. Nikkei 225 was closed for holidays.
European stocks started sharply lower on Monday morning; the German DAX is 3.46% lower at 10,484. CAC 40 index is 3.98% lower at 4,390, while the FTSE MIB in Milan is 3.10% lower at 17,141. In London, the FTSE 100 is 0.19% lower at 5,751.
In commodities markets, the crude oil trades lower amid the trade tensions between the USA and China. Brent Crude oil trades at 0.15% lower at $26.44 per barrel, while the WTI crude oil futures contract for June delivery is 5.74% lower at 18.73. Gold price rebounds above the 1,700 mark, adding 0.41% at 1,706. Gold’s first resistance stands at $1,741, the recent high, while the first support stands at $1,670 the Friday low. Silver price is 0.12% higher at $14.97.
Cryptocurrencies retreat today, Bitcoin’s (BTCUSD) price is 2.70% lower at $8,675, hitting the daily low at $8,521 and the daily high at $8,957. Bitcoin’s (BTCUSD) technical outlook is bullish now, as the price holds above the 200 and 100-day moving average. First support for BTCUSD is seen at $8,521 the daily low. On the other side, initial resistance stands at $9,485, the high from Friday’s session.
Ethereum is 4.70% lower, at $200.33. The initial resistance for Ethereum stands at 227.73, the high from May 1st trading session, while the first support stands at $195.01, the daily low. Ripple is 3.41% lower at 0.2117. Litecoin is 4.61% lower at 45.93.
In the Lookout: European Monetary Union Markit Manufacturing PMI registered in at 33.4 below the expectations of 33.6 in April.
Germany Markit Manufacturing PMI came in at 34.5, above forecasts (34.4) in April. France Markit Manufacturing PMI came in at 31.5 in line with forecasts, and the Italy Markit Manufacturing PMI came in at 31.1, topping the forecasts of 30 in April.
Turkey Exports declined to $8.44B in April from the previous $12.68B
Trading Perspective: In the forex markets, the EURUSD is 0.45% lower at 1.0930 after weak Manufacturing PMIs. USDCHF is 0.35% higher at 0.9642. GBPUSD is 0.47% lower at 1.2428; the AUDUSD is 0.18% lower at 0.6404. The Yen is stronger against the USD; the USDJPY is 0.01% lower at 106.87.
