Daily Markets Broadcast 2020-02-28

Daily Markets Broadcast

2020-02-28

Wall Street slumps on virus threat

Wall Street indices were in freefall yesterday, posting losses of around 5%, as CoVid-19 spread more quickly outside China. The state of California reported its first confirmed case of community transmission, while more companies are warning of performance hits in Q1.

 

US30USD Weekly Chart

Source: OANDA fxTrade

  • The US30 index hit the lowest since October 10 early this morning after extending losses to a sixth day yesterday. It’s on track for the biggest weekly loss since October 2008
  • The index looks set to close below the 55-week moving average at 3,003.7 for the first time since May last year
  • US personal income and spending probably both rose 0.3% in January, according to the latest survey. The Chicago PMI for February is expected to improve to 45.9 from 42.9 last month.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set to extend the recent losing streak to a seventh day today amid virus fears
  • The index has touched the lowest since October 10 since the US close and is facing the biggest weekly loss since the October 2008 crash
  • German consumer prices are seen holding steady at +1.7% y/y in February, according to the latest survey.

 

XAU/USD Daily Chart

Source: OANDA fxTrade

  • Despite the slump in equity markets, gold has not been able to benefit as a safe haven as a firmer US dollar works against the trend
  • That said, gold is on a three-day uptrend and is working to recoup Tuesday’s losses. Monday’s high of 1,690 remains an upside barrier
  • The lust for safe-haven assets has pushed US Treasury yields to record lows and futures markets are now pricing in the possibility of three Fed rate cuts by year end.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.