By IFCMarkets
US stock market retreat slowed on Monday as Senate failed to pass the $1.3 trillion aid package that Democrats claimed is tilted toward corporate bailout measures. President Trump said he was considering how to reopen the US economy when a 15-day shutdown ended next week. The S&P 500 lost 2.9% to 2237.40. Dow Jones industrial fell 3% to 18591.93. The Nasdaq slid 0.3% to 6860.67. The dollar weakening continued as the Federal Reserve’s announced it would buy unlimited amount of Treasurys and mortgage-backed securities and bolster emergency lending facilities: 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, slipped 0.1% to 102.28 and is lower currently. Futures point to higher market openings today.
European stocks pulled back on Monday as the coronavirus outbreak continued to weigh on global financial markets. The EUR/USD extended gains while GBP/USD’s slid yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 4.4% led by travel and leisure shares. The DAX 30 slid 2.1% to 8741.15. France’s CAC 40 slumped 3.3% and UK’s FTSE 100 lost 3.8% to 4993.89.
Asian stock indices are rebounding today following Fed’s pledged of limitless asset purchases on Monday to support market functioning. Nikkei recovered 7.1% to 18092.35 despite resumed yen climbing against the dollar. Markets in China are rising as authorities started lifting a lockdown in most of its virus-hit Hubei province after recording almost no new infections for more than a week: the Shanghai Composite Index is up 2.4% and Hong Kong’s Hang Seng Index is 4.5% higher. Australia’s All Ordinaries Index rebounded 4.2% despite continuing Australian dollar climb against the greenback.
Brent futures prices are extending gains after rebounding on Monday. Prices ended higher yesterday: May Brent crude closed 0.2% higher at $27.03 a barrel on Monday after 46.5% drop for the month to date.
Gold prices are climbing today. April gold jumped 5.6% to $1567.60 on Monday.
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