The spread of the virus outside China has already exceeded China’s own. In the United States, the first infections appear that have nothing to do with China or with traveling to regions with the infection. In Europe, the virus is rampant. Italy, France are on the verge of an epidemy. Other countries are suffering. There are fatal outcomes. Analysts are raising alarm bells.
The chart of the day – Brent
The American market continued its strong decline on Thursday. During the trading session, the major American indices were down by more than 2%. Many analytical agencies already forecast that the majority of American companies will have problems with profits in 2020. The Bank of America has reduced its global growth forecasts to minimum values. Further it will be even better, if there will be no information in the world on how to treat the virus effectively and how to improve the economy.
The Euro looks great against a falling dollar. On Thursday, the European currency reached a three-week high at 1.1005. The probability of the US refinancing rate reduction reached 70% already in March. The yield of 10-year bonds turned out to be at 1.25%, which is almost a historic low. The US dollar is losing ground on all fronts. Technically, the trend for the euro remains bullish. The support remains at 1.0955. From above, we have a strong resistance at 1.1000, if the Euro breaks this level and is able to consolidate there, we are waiting for a further exit at 1.1025 and above.
On Thursday, oil reached its lowest level since 2017. What does it mean? Inventories in the U.S. have declined, economic indicators are falling all over the world. The demand for oil will also fall, because black gold is involved in most economic processes. OPEC is trying to calm down the market and assure that the demand for oil will not decrease more than 310 thousand barrels a day, but does not do it very decisively. Brent trades at $51.20 per barrel on Thursday.
What is waiting for us today?
00.30 Japan Consumer Price Core Index
09.55 Change in the number of unemployed in Germany for February
14.30 GDP per year in Canada
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