Asian stocks slump for one more day in a volatile session as Wall Street had the worst one-day sell-off since 1987.
Investors were disappointed by the measures announced from President Trump and ECB, amid the coronavirus outbreak impact on the global economy. The virus has infected over 128,000 people across the globe and killed over 4,700. The death toll in the USA rose to 39, with over 1,300 confirmed cases.
Stocks across Asia experienced significant swings losing in early trading over 10% just to recover some of the losses before the end of the session. The World Health Organization declared the coronavirus spread a pandemic amid the surge in cases across the globe.
Nikkei 225 index finished 6.08% lower at 17,431. The Shanghai Composite index closed 1.65% lower at 2875. The Singapore FTSE Straits Times is 1.65% lower at 2635. Hang Seng in Hong Kong was 2.21% lower at 23771. The ASX 200 index lost 7.36% at 5304 in one of the worst falls since 2008. Now the index has lost all the gains since the beginning of 2019.
European indices rebound in the early morning. The German DAX is 3.30% higher at 9,461. CAC 40 index is 3.60 higher at 4,191, while the FTSE MIB in Milan is 7.25% higher at 15,979. In London, the FTSE 100 is 4.27% higher at 5,462 after yesterday the Bank of England (BOE) cut interest rates by 50 basis points.
In the commodities markets, the crude oil price managed to rebound in Asian session amid the price war between Saudi Arabia and Russia. WTI crude oil is 2.75% higher at $32.35 while the Brent oil is 3.94% higher at $33.95 per barrel. The gold price trades higher after three days of losses.
As of writing, gold is 0.67% higher at 1585. The gold price first resistance stands at $1,703 the recent high, while the support stands at $1,551 the daily low. Silver price is 1.13% lower at $15.61.
Cryptocurrencies jumped higher in the early morning after yesterday’s sharp losses. Bitcoin (BTCUSD) is 17.29% higher at $5,675, hitting the daily low at $3,764 and the daily high at $5,920. Bitcoin’s technical outlook is clearly bearish as the cryptocurrency trades below the 100-day moving average and makes consecutive lower lows and lower highs. Immediate support for BTCUSD stands now at $3,764 the daily low. On the other side, the first resistance is seen at the 6,000 mark, and then at 9,123 Friday’s high. The next supply zone will be met at 10,495 the yearly top.
Ethereum is 22.25% higher at 133.59, with capitalization at 14.54 billion. The first resistance for Ethereum stands at $141.98, the daily high, while the first support stands at $81.89 today’s low. Ripple (XRPUSD) is 12.82 higher at 0.1582. Litecoin (LTCUSD) is 35.57% higher at 35.32. The crypto market capitalization stands now at $159.59 billion.
In the Lookout: The Bank of Japan has offered to inject 500 billion yen into the system via an unscheduled repo operation.
Germany Consumer Price Index registered in 0.4% in line with expectations in February.
Moody’s revised down estimated economic growth in Mexico for 2020 from 1% to 0.9% due to coronavirus outbreak.
People’s Bank of China has set the Yuan (USDCNY) reference rate at 7.0033 versus yesterday’s fix at 6.9641.
Trading Perspective: In the foreign exchange markets, the Aussie dollar rebounds today after the sell-off and is 1.17 higher at 0.6307 against the greenback. The U.S. dollar index is 0.14% higher at 97.63. NZDUSD trades 1.11% higher at 0.6157.