18.02 - break in USD showed us the markets for what they are
Even though yesterday was a holiday in the USA, we still got some of the news and some of the movement from the region. For example, Apple stated that they are not going to be able to meet their revenue goal in March because of the lower production and demand paces in China. Surely this is the fault of coronavirus, so there is nothing here that is going to surprise us in the long run. But surely a statement like that is not going to stay unnoticed. Today the markets open for trading in the USE, so American stocks are to be watched thoroughly today and tomorrow.
In general, the situation in the markets reversed. What found powers to recover yesterday, is falling down today. What was losing price is finding it once again. This means that yesterday’s break that USD gave us was just what we needed to see the markets for what they really are.
Lower demand for USD actually gave the assets the possibility to grow. But what was supposed to fall – fell. For example pound. We have already talked about it yesterday. Post-Brexit pound doesn’t seem to be suffering. But it seems that it is only because of the global panic that we are witnessing at the moment. Coronavirus is pushing us away from European markets and into the hands of GBP. But when the situation fades, we are going to see more of the weaker pound. So those trading pound better not get comfortable.
Surely commodities are grasping our mind as well. Yesterday we saw oil falling as well as precious metal. But today the situation is not quite the same. Today we are looking at weaker oil and at growing precious metals. This means that our need for safe havens Is stinger today than it was yesterday. Well, that is predictable, I have to say. With the situation being as it is, it is no wonder that we are going to start looking at safe havens even more intensely.
Here are the main shifts for the day:
Topix declined 1.3 percent.
Kospi decreased 1.6 percent.
Shanghai Composite was flat.
Hang Seng from Hong Kong dropped 1.3 percent
S&P 500 futures dropped 0.3 percent.
Euro was barely moved- $1.0835.
Pound lost 0.4 percent - $1.2999.
Yen declined 0.1 percent – 109.76 per dollar.
Canadian dollar declined 0.1 percent - $1.3243.
Tesla dropped 0.5 percent - $800.03.
Apple wasn’t changed much - $324.95.
Facebook advanced 0.5 percent – $214.18.
Amazon dropped 0.7 percent – $2134.87 per share.
Google recovered 0.35 percent - $1518.73.
WTI lost 1.1 percent - $51.7 per barrel.
Brent decreased 0.8 percent - $57.08 per barrel.
Gold recovered 0.3 percent - $1585.5 per ounce.
Silver added 0.4 percent - $17.84 per ounce.
Platinum grew a little bit– $971.18.
Palladium surged 0.25 percent - $2526.70 per ounce.