global equities

Global Stocks Rebound After Fed’s Emergency Rate Cut

Emergency Rate Cut
Emergency Rate Cut

Asian indices finished mixed as the emergency rate cut from the Fed yesterday failed to ease investors’ fears about the impact of the coronavirus outbreak. Global confirmed cases had surpassed today 93,000 and many companies around the globe are banning traveling while they offer the employees the choice to work from home.

The Federal Reserve proceeded with a 50 basis point rate cut yesterday in an effort to offset the coronavirus outbreak impact. The Hong Kong Monetary Authority followed suit and the South Korean government unveiled a $9.8 billion fiscal stimulus to help businesses. Wall Street indices ended in negative territory despite the aggressive interest rate cut by the Fed. Yesterday, the RBA also cut the interest rates by 25 basis points. 

Nikkei 225 finished 0.08% higher at 21,100. The Shanghai Composite index closed 0.43% higher at 3005. The Singapore FTSE Straits Times closed up 0.18% at 3024. Hang Seng in Hong Kong ended 0.15% lower at 26243. The ASX 200 slumped 1.7%  at 6325, despite the RBA interest rate cut

European stocks started higher for the second consecutive day. The German DAX is 1.03% higher at 12,109. CAC40 index is 1.27% higher at 5,462, while the FTSE MIB in Milan is 0.97% higher at 21,958. In London, the FTSE 100 is 1.35% higher at 6,809.  

In the commodities markets, the WTI crude oil is 1.12% higher at $47.72 while the Brent oil is 1.10% higher at $52.40 per barrel. The gold price is trading slightly lower, giving up 0.21% at 1637. The gold price is bullish, and the first resistance will be met at $1,689 the recent high, while the support stands at $1,584 the recent low. Silver price is 0.10% lower at $17.19.    

Cryptocurrencies traded mostly mixed during the Asian trading session. Bitcoin (BTCUSD) is 0.47% lower at $8,802 hitting the daily low at $8,693 and the daily high at $8,839. Bitcoin’s technical outlook is neutral now as the cryptocurrency is trapped between the 50 and 100-day moving average. First support for BTCUSD stands now at $8,400 the low from Friday’s trading session. On the upside, the first resistance stands at 8893 the daily high and then at 10,495 the yearly top.

Ethereum (ETHUSD) trades 1.13% higher at 225.09 with capitalization at 24.85 billion. The initial resistance for ETHUSD stands at $274.18, the February top while the first support stands at $213.47 the February low. Ripple is 1.08 higher at 0.2364. Litecoin is 0.21% lower at 60.88. The crypto market capitalization stands now at $252.70 billion.

In the Lookout: China Caixin Services PMI below forecasts (52.6) in February: Actual (26.5).

Australia Gross Domestic Product came in at 0.5%, above expectations of 0.3% in the fourth quarter. 

The New Zealand ANZ Commodity Price came in at -2.1%, below the forecasts of -0.8% in February. 

The People’s Bank of China has set the Yuan (USDCNY) reference rate at 6.9514 versus yesterday’s fix at 6.9516. 

Trading Perspective: In the foreign exchange markets, the Aussie dollar is 0.43% higher at 0.6611 against the USD. The US dollar index is 0.12% higher at 97.25. NZDUSD trades 0.24% higher at 0.6289.

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