Futures sink after Trump bans travel in Europe - 12.3.2020

Dow in bear market as WHO designates coronavirus outbreak a pandemic

US stock market plunge renewed on Wednesday after the World Health Organization designated the global spread of coronavirus as pandemic. The S&P 500 fell 4.9% to 2741.38. The Dow Jones industrial average plummeted 5.85% to 23553.22 closing in a bear market, defined as a drop of at least 20% from a record intraday peak. Nasdaq slumped 4.88% to 7952.05. The dollar strengthening slowed as the consumer inflation annual rate slipped to 2.3% from 2.5% in January. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.4% to 96.66 but is lower currently. Futures on stock indexes are down after President Trump announced he would restrict travel between US and Europe for 30 days to fight the coronavirus outbreak.

FTSE 100 led European indexes retreat after Bank Of England rate cut

European stocks pulled back on Wednesday erasing earlier gains. Both EUR/USD and GBP/USD slowed their declines yesterday with both pairs higher currently. The Stoxx Europe 600 ended down 0.7% led by travel shares. Germany’s DAX 30 slid 0.4% to 10438.68. France’s CAC 40 lost 0.6% while UK’s FTSE 100 fell 1.4% to 5876.52 as Bank of England cut its main interest rate from 0.75% to 0.25% and announced new financing program to support small and medium-sized businesses, along with measures to help commercial banks boost lending. Furthermore, UK finance minister announced fiscal stimulus measures valued at around £30 billion ($39 billion). European stock indexes are down currently ahead of European Central Bank policy meeting today following ECB President Lagarde’s comment Tuesday Europe would “see a scenario that would remind many of us of the 2008 Great Financial Crisis” unless European authorities took coordinated action.

Asian indexes slump led by Australia’s All Ordinaries Index

Asian stock indices are sharply lower today tracking changes on Wall Street overnight. Nikkei tumbled 4.6% to 18530.5 as yen accelerated its climbing against the dollar. Markets in China are falling: Shanghai Composite Index is 1.5% lower while Hong Kong’s Hang Seng Index is down 4.1%. Australia’s All Ordinaries Index plunged 7.4% despite Australian dollar’s continuing slide against the greenback.

Brent down after US stockpile build

Brent futures prices are extending losses today. Prices fell yesterday after the Energy Information Administration report US crude oil inventories rose by bigger than expected 7.7 million barrels last week, seventh weekly rise in a row: May Brent added fell 3.8% to $35.79 on Wednesday.

Gold edges up as Dollar slips

Gold prices are lower today. The spot price of an ounce of gold slipped 0.9% to $1643 an ounce on Wednesday.