News

Stocks, Dollar, and Yields Get Hammered as Risk-off Mood Dominates

Equities

Major US stock-index futures resumed downfall amid growing concerns over the impact of Coronavirus on the US economy. The CBOE volatility index, VIX, which is also known as a fear indicator rose to 43 again. The Dow Jones Industrial Average futures declined to 25703, the S&P500 futures tumbled to 2974, and Nasdaq futures fell to 8520. In Europe, the German Dax plunged to 11646, and FTSE MIB erased gains and drifted lower to 21362.

USD

The dollar index, which measures the greenback against a basket of major currencies extended losses, to trade at a low of 96.26, the lowest since July 2019. Meanwhile, the US treasury yields fell further where the US 10-year yields dropped to 0.79%, and the US 30-year yields declined to 1.381%. The CME Fed Watch tool is showing an increased probability of another 50 basis point rate cut in March meeting. The EURUSD rose to a high of $1.1275, the GBPUSD climbed to $1.2981, and the USDJPY tumbled to 105.66, the lowest since August 2019. Market participants are looking forward to the February US jobs report later today.

Metals

Gold prices soared to a two-week high amid growing market risks and uncertainty. The price of a gold ounce rose to $1681, while the price of silver dipped to $17.28, and palladium futures lost earlier gains and plunged to $2401. The gold/silver ratio rallied to a record high of 96.71.

Oil

Oil prices declined for the third consecutive day on fears Russia won't accept to deepen output cuts. Yesterday, the Organization of Petroleum Exporting Countries pushed for 1.5 million barrels per day cut (1 million by the organization and 500,000 by its allies). However, Russia's decision isn't clear yet. Today's meeting between OPEC and its allies will reveal the final decision. The West Texas Intermediate crude futures fell to $44.97, and Brent futures dropped to $48.91, the lowest since December 2018.

Major Economic Events

GMT Country Event Expectation Previous

10:00

-

OPEC+ Meeting

-

-

13:30

US

Average Hourly Earnings (MoM) (Feb)

0.3%

0.2%

13:30

US

Nonfarm Payrolls (Feb)

175

225

13:30

US

Unemployment Rate (Feb)

3.6%

3.6%

13:30

CA

Employment Change (Feb)

10.0

34.5

13:30

CA

Unemployment Rate (Feb)

5.6%

5.5%


Disclaimer
 

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