Neither fiscal nor monetary stimulus is able to provide sustainable support to market so far. Stock markets are back under pressure today despite the massive USD 1T stimulus proposal by the US. Additionally, sentiments are pressured by the sudden spike in Italian treasury yields, and break of a key support level in oil price. Coronavirus pandemic continues to spread all over Europe. In the currency markets, Australian Dollar is currently the weakest one for today, followed by Canadian and then New Zealand. Yen is the strongest, together with Swiss Franc and Dollar. Technically, WTI crude oil beaks through 27.50/69 key support zone decisive break, and it's trading below 25 handle. WTI is extending long term down trend, possibly targeting long term support zone between 10.65 and 17.12 made between 1998/2001. GBP/USD's break of 1.1946 key support also confirms long term down trend resumption. We might see GBP/JPY breaks corresponding support zone of 122.75/126.54 soon. In Europe, currently, FTSE is down -4.57%. DAX is down -5.06%. CAC is down -5.53%. German 10-year yield is up 0.163 at -0.270. Earlier in Asia, Nikkei dropped -1.68%. Hong Kong HSI dropped -4.18%. China Shanghai SSE dropped -1.83%. Singapore Strait Times dropped -1.18%. Japan 10-year JGB yield rose 0.0582 to 0.066. |
No comments:
Post a Comment