Futures stumble after Fed slashes interest rate to 0% - 16.3.2020

US stocks bounced back while Trump declares emergency

US stock market bounced back on Friday after President Trump declared a national emergency opening up $50 billion of financing to combat coronavirus outbreak. Sunday night Federal Reserve cut interest rates to 0% and announced $700 billion QE program. The S&P 500 rebounded 9.3% to 2711.02, booking a 8.8% loss for the week. Dow Jones industrial jumped 9.4% to 23185.62. The Nasdaq ended 9.3% higher at 7874.88. The dollar strengthening accelerated as University of Michigan consumer sentiment index declined less than expected. 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 1% to 98.47 but is lower currently. Futures on stock indexes are down.

FTSE 100 led European stock indexes rebound

European stocks rebounded on Friday. Both EUR/USD and GBP/USD continued sliding on Friday with both pairs higher currently. The Stoxx Europe 600 Index added 1% led by basic resources shares. The DAX 30 edged up 0.8% to 9232.08 Friday. France’s CAC 40 gained 1.8% and UK’s FTSE 100 rose 2.5% to 5366.1.

Australia’s All Ordinaries Index leads Asian indexes plunge

Asian stock indices are lower today after surprise one percentage point rate cut by the Federal Reserve. Nikkei fell 2.5% to 17002.04 as yen resumed its climbing against the dollar. China’s markets are falling after reports China's industrial output, retail sales fell in the first two months of the year: the Shanghai Composite Index is down 3.4% while Hong Kong’s Hang Seng Index is 5.2% lower. Australia’s All Ordinaries Index plummeted 9.7% despite continued sliding of Australian dollar against the greenback.

Brent slips

Brent futures prices are in retreat following 25% plunge last week after Saudi Arabia boosted crude oil production. Prices rose on Friday as President Trump said strategic crude oil reserves will be replenished by purchases at current lower prices: Brent for May settlement added 1.9% to $33.85 a barrel Friday.

Gold rebounds as Dollar weakens

Gold prices are recovering today. Prices fell on Friday as dollar strengthening speeded up. Gold for April delivery lost 4.6% to $1516.70 on Friday.