US stocks backslide as coronavirus worries persist

IFC Markets

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Oct 31, 2012
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Dollar weakening resumed
US stock market recovery paused on Thursday as investors' concern the negative impact of coronavirus outbreak may be bigger-than-realized mounted against the background of increase in coronavirus infection cases outside China. The S&P 500 lost 3.4% to 3023.94. The Dow Jones industrial average fell 3.6% to 26121.28. Nasdaq composite index slumped 3.1% to 8738.60. The dollar weakening resumed after mixed data as the number of people applying for first time jobless benefits declined last week while factory orders declined more than expected in January: live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.8% to 96.61 and is lower currently. Futures on stock indexes point to lower openings today.


CAC 40 led European indexes reversal
European stocks pulled back on Thursday. EUR/USD joined GBP/USD’s continued climbing yesterday with both pairs higher currently. The Stoxx Europe 600 index lost 1.4% led by basic resources and autos shares. Germany’s DAX 30 declined 1.5% to 11944.72. France’s CAC 40 slumped 1.9% while UK’s FTSE 100 fell 1.6% to 6705.43.


Asian indexes move sharply lower
Asian stock indices are mostly lower today. Nikkei ended down 2.8% at 20732.00 with yen advance against dollar continuing. Markets in China are falling despite reports of factories there gradually reopening: the Shanghai Composite Index is down 1.2% while Hong Kong’s Hang Seng Index is 2.6% lower. Australia’s All Ordinaries Index dropped 2.8% as Australian dollar resumed its climb against the greenback.

AU200 falling below MA(200) 3/6/2020 Market Overview IFC Markets chart



Brent slide continues
Brent futures prices are lower today. Prices accelerated decline yesterday despite Organization of the Petroleum Exporting Countries Conference recommendation that Friday’s meeting between OPEC and its allies, collectively known as OPEC+, extend the current crude oil production curb agreement to the end of the year. May Brent crude lost 2.2% to $49.99 a barrel on Thursday.


Gold rises as Dollar resumes declining
Gold prices are extending gains today. Prices rose yesterday: April gold added 1.9% to $1674.10 an ounce on Thursday.