Asian stocks managed to rebound today after yesterday’s sell-off as investors hope for a stimulus from governments and central banks. The yields on U.S. 10-year Treasury rise to 0.70% and crude oil prices rallied over 7%, offering hope that markets had found a floor, at least for now. The Australian government will soon announce measures to stimulate the battered economy by the effects of the coronavirus spread.
Nikkei 225 index finished 0.85% higher at 19,867. The Shanghai Composite index closed 1.72% higher at 2993. The Singapore FTSE Straits Times is 2.30% higher at 2847. Hang Seng in Hong Kong was 1.91% higher at 25514. The ASX 200 index finished 3.11% higher at 5939.
European indices started in positive territory the day. The German DAX is 2.47% higher at 10,885. CAC40 index is 2.59% higher at 4,835, while the FTSE MIB in Milan is 2.40% higher at 18,922. In London, the FTSE 100 is 2.58% higher at 6,125.
In the commodities markets, the oil price rises sharply after the sell-off yesterday in one of the worse days for the black gold. WTI crude oil is 7.00% higher at $33.33 while the Brent oil is 10.04% higher at $36.78 per barrel. The gold price after a spike above the 1700 mark yesterday retreated and as of writing is 1.11% lower at 1661. The gold price’s first resistance seen at $1,703 the recent high, while the support stands at $1,584 the recent low. Silver price is 0.31% lower at $17.04.
The correction in cryptocurrencies continues for one more day. Bitcoin (BTCUSD) is 0.27% lower at $7,914, hitting the daily low at $7,800 and the daily high at $7,955. Bitcoin’s technical outlook is bearish now as the cryptocurrency broke below the 100-day moving average. First support for BTCUSD stands now at $7,600 the recent low. On the flip side, the first resistance is seen at 9,123 Friday’s high and then at 10,495 the yearly top.
Ethereum is 1.27% lower at 200.09 with capitalization at 22.15 billion. The first resistance for Ethereum stands at $274.18, the February top while the first support stands at $194.64 today’s low. Ripple (XRPUSD) is 1.08 higher at 0.2073. Litecoin (LTCUSD) is 1.74% lower at 49.65. The crypto market capitalization stands now at $226.59 billion.
In the Lookout: Moody’s rating agency cut India’s 2020 growth forecast to 5.3% vs. 5.4% previously.
China Producer Price Index (YoY) came in at -0.4% below the forecasts of -0.3% in February. China Consumer Price Index (YoY) came in at 5.2% in line with forecasts.
People’s Bank of China has set the Yuan (USDCNY) reference rate at 6.9389 versus yesterday’s fix at 6.9260.
Trading Perspective: In the foreign exchange markets, the AUDUSD is 0.21 lower at 0.6570. The U.S. dollar index is 0.70% higher at 95.83. NZDUSD trades 0.24% lower at 0.6321.