Daily Markets Broadcast 2020-02-24

Daily Markets Broadcast

2020-02-24

Wall Street slumps as virus concerns intensify

US indices have started the week negatively after the number of CoVid-19 cases outside of China increases. The G-20 meeting at the weekend warned of risks to global growth due to supply chain disruptions. It’s a Japan holiday today, so liquidity and volumes may be affected.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index has fallen the most this month so far today as the impact of CoVid-19 intensifies
• The index has traded below the 55-day moving average at 28,809 for the first time since February 4. The 100-day moving average is at 28,141
• There are no major data releases scheduled for today. The Chicago Fed national activity index is seen falling to -0.92 in January from -0.35 while the Dallas Fed manufacturing index is expected to improve to 11.8 this month from -0.2 in January.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index has echoed the weak start by US indices and has fallen the most since January 31
• The index has fallen to the lowest in almost three weeks and touched the 55-day moving average at 13,382 for the first time since February 5. The 100-day average is at 13,141
• Germany’s IFO surveys for February are due today and the expectations index is seen improving to 93.3 from 92.9 last month.

XAU/USD Monthly Chart

Source: OANDA fxTrade

• Gold has spiked to the highest level in seven years in early trading this morning as CoVid-19 fears boost safe haven asset demand
• Today marks the fifth daily gain in a row and the precious metal is on track for the biggest monthly gain since August last year
• South Korea has raised is alarm level to red, the highest possible, as the number of virus cases spiked ten-fold in five days. The global total is now 78,991 with 2,469 deaths reported.

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