Friday was another volatile session that ended one of Wall Street’s worst weeks since the financial crisis. The sudden shutdown of much of the world’s largest economy has sent some stocks diving from all-time highs into a bear market at a record pace.
EQUITIES
U.S. indices finished the week with yet another prolonged loss in the market amid panic over the coronavirus outbreak. Market once more experienced a sudden drop with the S&P 500 finished Friday’s trading session down by 4.3% and hit a three-year low. Dow losses 913 points, first time moving under 1,000 points mark loss following more than a week.
On Friday, major benchmarks end such as follow:
S&P 500 Index : $2,304.92, down -104.47 points or -4.34%
Dow Jones Industrial Average : $19,173.98, down -913.21 points or -4.55%
Nasdaq Composite Index : $6,879.52, down -271.06 points or -3.79%
European exchanges however recorded gains, with London's FTSE 100 0.76%, Germany's DAX 3.70% and France's CAC 40 up 5.01%. Italy's closed higher at 1.71% and pan-European Stoxx 600 index recorded 1.82% gains.
OIL
Oil price plunged on Friday, with WTI closed to its lowest low this week at $22.63 or 12.66%, while Brent crude shed 5.23% at $26.98.
Currently, U.S. benchmark WTI crude is trading at $22.46 per barrel while Brent crude trading at $26.01 per barrel, as of writing time (UTC+08.00).
CURRENCIES
U.S. dollar index, US:DXY which tracks the greenback’s performance against a basket of currency trading peers, rose 0.2% to $102.18, adding to a string of gains against several currencies. Against MXN (1.34%), NZD (1.30%), AUD (1.02%), RUB (0.87%), SGD (0.62%), SEK (0.47%) and GBP (0.11%),
Meanwhile, U.S. dollar also drops against some other currencies, such as JPY (-0.78%), EUR (-0.25%), DKK (-0.24), NOK (-0.06%) and CNY (-0.03%) at the latest reading.
GOLD
Gold currently trading at $1,496.00 per ounce, while stands around $1,496.80 per ounce for gold futures of writing time, falling short of $1,500 handle.
Silver trading at $12.54, platinum trading at $618.00 and palladium trading at $1,585.00.
ECONOMIC OUTLOOK
The major averages swung wildly on Friday as most countries adopted stricter measures to curb the coronavirus spread, raising even more concerns about the virus’ economic blow. A swift reversal in oil prices also pressured stocks, as it led investors to sell assets in other markets. Companies in the sector will be seeing what more they can do to cut costs, shift their activities to the lowest cost fields they can, trim investment and think hard about what dividend they can pay. The Fed once again announced new monetary stimulus on Friday, but that wasn’t enough to quell market volatility or assuage investors’ fears. Bottom line, the market remains fearful of the coronavirus and its ramifications on the economy.
Analysts fear the collapse in oil and other commodity prices will set off a deflationary wave making it harder for monetary policy easing to gain traction as economies shut down. In America, one in three were ordered to stay home on Sunday to slow the spread of the disease, while Italy banned internal travel as deaths there reached 5,476. Other countries also had taken restricted movement order to curb this COVID-19 impact. To date, number of confirmed worldwide cases for COVID-19 pandemic has now reached more than 340,000 today affecting 192 countries and territories around the world. The death toll from the novel coronavirus has now topped 14,000 – including 450 in the U.S.
TECHNICAL OUTLOOK
[XAUUSD]
Gold is expected to uptrend across $1,500 handle today.
It has already break resistance line earlier today with next first resistance is fibo level 38.2%. Chart below showing that price now is forming a pennant pattern and reversal is expected, presenting LONG option.
