US stocks snap seven-day losing streak - 3.3.2020

Dollar weakening intact

US stock market rallied on Monday on investors’ hopes central banks will act to support economies impacted by spread of coronavirus infection from China. The S&P 500 rebounded 4.6% to 3090.23. Dow Jones industrial jumped 5.1% to 26703.32. The Nasdaq rose 4.5% to 8952.16. The dollar weakening continued at faster pace yesterday on disappointing data as the Institute for Supply Management’s manufacturing index fell more than expected: 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 0.5% to 97.52 and is lower currently. Futures on stock indexes point to lower openings today.

FTSE 100 led European indexes recovery

European stocks ended marginally higher on Monday. The EUR/USD accelerated its climbing while GBP/USD continued sliding yesterday with both pairs higher currently. The Stoxx Europe 600 index added 0.1%. The DAX 30 however dipped 0.3% to 11857.87. France’s CAC 40 added 0.4% and UK’s FTSE 100 rose 1.1% to 6654.89.

GB100 recovering toward MA(200) 3/3/2020 Market Overview IFC Markets chart

Asian indexes recover while Nikkei falls

Asian stock indices are mostly higher today following the rally on Wall Street overnight. Nikkei however lost 1.2% to 21719.78 as yen slide against the dollar reversed. Markets in China are rising before a conference call today by finance ministers and central bank leaders of the Group of Seven major industrial countries to discuss an economic response to the coronovirus outbreak: the Shanghai Composite Index is up 0.7 % and Hong Kong’s Hang Seng Index is 0.3% higher. Australia’s All Ordinaries Index recovered 0.7% despite continuing Australian dollar climb against the greenback even though the Reserve Bank of Australia cut rates to a record low 0.5%.

Brent slips

Brent futures prices are retracing lower today. Prices ended sharply higher yesterday as traders bet OPEC and major producers of crude oil will soon announce additional production cuts. May Brent crude closed 4.5% higher at $51.90 a barrel on Monday.