Futures on US stock indexes rebound after record losses - 17.3.2020

Nasdaq records worst loss ever

US stock market plunge accelerated on Monday despite Fed’s full percentage point rate cut Sunday and the start of the purchase of $700 billion in Treasurys and mortgage-backed securities. President Trump called on Americans to avoid gatherings of 10 people or more. The S&P 500 fell 12% to 2386.13. Dow Jones industrial sank 12.9% to 20188.52. The Nasdaq tumbled 12.3% to 6904.59, suffering biggest daily loss ever. The dollar strengthening halted as the Empire State manufacturing index plunged 34.4 points to a record low of negative 21.5 in March: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.4% to 98.08 and is lower currently. Futures on stock indexes indicate higher openings today.

CAC 40 led European indexes rout

European stocks joined global retreat on Monday. The EUR/USD turned higher on Monday while GBP/USD’s slide slowed yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 5.1% led by travel and leisure shares as European Commission president proposed banning most foreign visitors into Europe for 30 days. The DAX 30 slumped 5.3% to 8742.25. France’s CAC 40 dropped 5.75% and UK’s FTSE 100 lost 4% to 5151.08.

Australia’s All Ordinaries Index rebounds with Asian indexes mixed

Asian stock indices are mixed today following Monday’s plunge. Nikkei recovered 0.1% to 170202.12 as yen’s climbing against the dollar halted. Markets in China are falling: the Shanghai Composite Index is down 1 % and Hong Kong’s Hang Seng Index is 0.4% lower. Australia’s All Ordinaries Index rebounded 5.8% as Australian dollar continued its slide against the greenback.

AU200 rebounding below MA(200) 3/17/2020 Market Overview IFC Markets chart

Brent rebounds

Brent futures prices are rebounding after hitting the lowest in over four years on Monday. Prices ended sharply lower yesterday despite President Trump’s announcement the US will start buying oil at current lower prices to replenish its strategic crude oil reserves. May Brent crude closed 11% lower at $30.05 a barrel on Monday.