News

US Stock Futures Extend Declines, Dollar Rallies

Equities

Major US stock index futures kicked off the week on a gap lower as the Coronavirus outbreak intensified and continued to suspend the economic activity. Stock benchmarks hit their first circuit breaker at 5%, minutes after the open, but managed to bounce off the limit down and recover slightly to the European trading session. The Dow Jones Industrial Average futures recovered to 18509 from 18046, the S&P500 futures rallied to 2229 from 2171, and Nasdaq futures rose to 6839 from 6621.

USD

The dollar index, which measures the greenback against a basket of major currencies, inched higher during the Asian session to 102.98, recovering Friday's losses. Market participants are looking forward to the fiscal measures to be taken to ease the impact of the Coronavirus on US citizens. Treasury yields extended declines where the US 10-year yields tumbled to 0.774%, and the US 30-year yields dropped to 1.359%.

Metals

Precious metals pared gains earned on Friday as stocks plunged, and the dollar recovered. Market participants were liquidating their gold positions to cover for their stock losses. The price of a gold ounce dipped to $1485, the price of a silver ounce declined to $12.36, and palladium futures dropped to $1483.

Oil

Oil prices tumble as the coronavirus outbreak continued to lock down cities and halt the economic activity around the world. On the other hand, market participants are worried about the emerging price war between top oil producers as we approach the end of the OPEC+ output reduction deal. The West Texas Intermediate crude futures plunged to $20.79, and Brent futures descended to $25.39.

Major Economic Events

GMT Country Event Expectation Previous

11:00

EZ

 German Buba Monthly Report

-

-

12:30

CA

Wholesale Sales (MoM) (Jan)

-0.2%

0.9%

15:00

EZ

Consumer Confidence

-14

-7

Disclaimer 

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