Investors Continue to Assess the Risks of the COVID-19 Spread

During yesterday's trading session, the US dollar fell against a basket of major currencies after the Fed’s emergency decision to lower the interest rate. The dollar index (#DX) closed in the red zone (-0.53%). According to a Bloomberg report, if the outbreak of the coronavirus continues to spread around the world, especially in the US, this may lead to a collapse of the US stock market, as during the global economic crisis of 2007-2008. The value of the currencies of many countries, however, may fall even more. Demand for the "safe haven" currencies has grown, as the US Central Bank’s measures could not alleviate concerns about the outbreak of COVID-19.

On Monday, the U.S. Presidential Administration urged the Senate to urgently support the coronavirus assistance plan approved by the House of Representatives and consider new large-scale stimulus measures for the economy. On Monday, Donald Trump called on Americans to abandon public activity for 15 days and not gather in groups of more than 10 people to stop the spread of coronavirus in the United States.

The "black gold" prices continued to fall. Currently, futures for the WTI crude oil are testing the $28.95 mark per barrel.

Market indicators

Yesterday, shares in the US stock market fell again: #SPY (-10.94%), #DIA (-12.76%), #QQQ (-11.98%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 0.80-0.81%.

• - UK labor market data at 11:30 (GMT+2:00);
• - ZEW economic sentiment index in Germany at 12:00 (GMT+2:00);
• - Statistics on retail sales in the US at 14:30 (GMT+2:00);
• - JOLTS job openings at 16:00 (GMT+2:00).

by JMarkets, 2020.03.17

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.