Risk-Off Returns to Markets, Stocks Slump 

Manufacturing PMI

Asian indices finished lower, after mixed economic data and as the coronavirus fears returned to markets. The good news came out from China with stronger than expected manufacturing PMI data out from China, while the Tankan survey came lower than expectations. President Trump warned the Americans that must be prepared for very painful two weeks. 

The Nikkei 225 ended 4.50% lower at 18065; The Singapore Straits Times closed down 1.65% at 2440, the Shanghai Composite index closed 0.55% lower at 2734. The Hang Seng was 2.19% lower at 23085. 

The European stocks are under selling pressure after weaker than expected PMI’s from several European countries. The German DAX is 4.28% lower at 9,505. CAC 40 index is 4.49% lower at 4,197, while the FTSE MIB in Milan is 2.43% lower at 16,633. In London, the FTSE 100 is 3.95% lower at 5,447.  

In commodities markets, crude oil price retreat today. WTI crude oil is 0.59% lower at $20.34 while the Brent oil is 2.29% lower at $25.18 per barrel. 

XAUUSD Daily Chart
XAUUSD Daily Chart

The gold price is 0.65% higher at 1584. The gold initial resistance stands at $1,703 the March high, while the initial support stands at $1,451 the low from March 16 trading session. Silver (XAGUSD) is 0.17% higher at $13.95.    

Cryptocurrencies slide by midday, Bitcoin’s (BTCUSD) price is 2.70% lower at $6,245, hitting the daily low at $6,195 and the daily high at $6,485. Bitcoin’s (BTCUSD) technical picture remains bearish, as the cryptocurrency trading below all the major daily moving averages. First support for Bitcoin stands now at $4,431 the low from March 14th. On the other hand, immediate resistance stands at $6,860 previous week high while the next strong resistance will be met at 10,495 the yearly top.

Ethereum is 1.03% lower, at 131.77 with capitalization at 14.60 billion. The initial resistance for Ethereum stands at 144.05 the previous week high, while the support stands at $102.00 the low from March 16th trading session. Ripple – XRPUSD is 0.74% lower at 0.1724. Litecoin (LTCUSD) is 2.04% lower at 38.35. The crypto market capitalization stands now at $177.60 billion.

In the Lookout: Germany Retail Sales came in at 1.2%, above expectations of 0% in February. 

China Caixin Manufacturing PMI came in at 50.1, topping the expectations of 46 in March. 

The Japan Tankan Large Manufacturing Index came in at -8 beating the expectations of -10 in 1Q. The Manufacturing Outlook came in at -1 below the forecasts of 2 in 1Q. 

The People’s Bank of China has set the Yuan reference rate at 7.0751 above yesterday’s fix at 7.0851.

Trading Perspective: In the foreign exchange markets, EURUSD is 0.93% lower at 1.0925, the Australian dollar is 1.27% lower at 0.6057 against the U.S. greenback. The Yen is stronger against the US Dollar, the USDJPY is 0.11% lower at 107.35. NZDUSD trades 0.95% lower at 0.5903.

AUDUSD Daily Chart
AUDUSD Daily Chart

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