The crisis is escalating. The weekend is not helping.

By 23/03/2020News
Morning Stock News

Gold   1494,23
(-0,20%)

EURUSD   1,075
( +0,56%)

DJIA  18322,50
(-3,72%)

OIL.WTI  23,025
(-2,48%)

DAX   8616,50
(+ 0,03%)

The week ends sadly for the markets. No one knows what to do next. In general, there were attempts to close the market in the green zone, but statements of the U.S. Federal Reserve that its actions are coordinated with banks in England, Canada, Japan, ECB and the National Bank of Switzerland did not leave a chance. A lot of dollar liquidity is needed now, and the US is ready to provide it.


Chart of the Day S&P500

The week closes again in the negative and it is absolutely unclear whether the bottom is close or not. Trillions of dollars have been thrown to save the world economy. Countries have a lot of money, but it is not clear whether they will need it and for what? Everywhere there is isolation, production stops. Maximum protection for the entire population. And it will have a very strong impact on the GDP of countries. China is beginning to come alive after the epidemic and we very much hope that the infection situation will change soon.


Japanese Yen

It’s very interesting how this currency behaves now. In general, the Bank of Japan has shown nothing new in the fight against the crisis and the coronavirus. Japan is going to hold the Olympic Games and it is very, very expensive. There is no information yet whether these competitions will be cancelled, but the Japanese Yen is weakening amid the problems with the markets. The whole cryptomarket completely collapsed on Thursday in just one hour. Bitcoin lost 20% of its value and pulled the rest of the crypto currencies. The total capitalization fell to $172 billion, about 88 billion less than a week earlier. It’s all like panic and fleeing to other assets. Bitcoin is now traded at $6,000, back to late 2018 levels.


Euro

The Euro can’t get enough of itself after serious statements by the US Federal Reserve and problems in Europe. Italy is suffering from coronavirus, the countries are in quarantine, the economy starts to stop completely. The countries must move on and make common decisions. In general, the world currencies will fluctuate very strongly now, and it is not yet clear who will win in this situation.


What’s waiting for us today?

14.30 USA National Activity Index
16.00 Consumer confidence index in Europe for March
23.00 Manufacturing PMI in Australia


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