News

US Stock Futures Falter at Limit Up

Equities

Major US stock-index futures failed to keep gains and fell from their limit up. During the Asian session, major indices recovered from their sharp drop since 1987 (hitting two circuit breakers on the day), and stalled at their limit up. However, as Europe got into trading, the American stock-indices failed to hold their gains and retreated from their limit up levels. The Dow Jones Industrial Average futures dropped to 20900 from the up limit of 21225, the S&P500 futures declined to 2476 from the up limit of 2508, and Nasdaq futures fell to 7273 from the up limit of 7293.

USD

The dollar index, which measures the greenback against a basket of major currencies, edged higher to 98.43, recovering from losses incurred after Fed's easing measures. The plunge in European currencies boosted the dollar rally. The Euro and pound account for almost 70% of the dollar index basket. Both currencies suffered, especially the pound, as the outbreak intensified in Europe. The EURUSD dropped to 1.1128, and the GBPUSD plunged to 1.2192, the lowest since October 2019. Market participants are looking forward to furthering input on the virus outbreak, and a series of economic indicators from the United Kingdom, the Eurozone, and the United States.

Metals

Precious metals incurred sharp losses yesterday on defensive selling. The price of a gold ounce tumbled to $1451, the lowest since November, and the price of a silver ounce plunged significantly to $11.78, the lowest since January 2009. The gold/silver ratio skyrocketed to a record high of 124. Both metals recovered as the US headed to the close along with other assets, but resumed down move today.

Oil

Oil prices bounced off their lows on short covering. Oil benchmarks caught significant losses as the Coronavirus outbreak continued and the price war fears between top producers lingered further. Meanwhile, the United States is taking advantage of the drop in prices to fill its strategic reserve. The West Texas Intermediate crude futures rallied to $30.30, and Brent futures rebounded from a four-year low of $29.48 to $31.22.

Major Economic Events

GMT Country Event Expectation Previous

9:30

UK

 Average Earnings Index +Bonus (Jan)

3.0%

2.9%

9:30

UK

 Claimant Count Change (Feb)

21.4

5.5

9:30

UK

 Unemployment Rate (Jan)

3.8%

3.8%

10:00

EZ

German ZEW Economic Sentiment (Mar)

-26.4

8.7

10:00

EZ

EU Finance Ministers Meeting

-

-

12:30

US

 Core Retail Sales (MoM) (Feb)

0.2%

0.3%

12:30

CA

Manufacturing Sales (MoM) (Jan)

-0.5%

-0.7%

13:15

US

 Industrial Production (MoM) (Feb)

0.4%

-0.3%

14:00

US

 Business Inventories (MoM) (Jan)

-0.1%

0.1%

14:00

US

JOLTs Job Openings (Jan)

6.476

6.423

Disclaimer 

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