Asian markets performed a strong rebound to the upside as all major indices ended higher with significant profits. Nikkei and KOSPI closed with 7,13% and 8,6% increase respectively. Likewise, the Shanghai Stock Exchange and Nifty 50 had a “green” session. This pattern is being repeated all over again. We have an upside reversal after a big drop. However, this reversal is not convincing the investors and there is new selling pressure.
Good news is coming from China as Reuters reported that Hubei is about to lift the travel restrictions on citizens. Moon Jae -in, S. Korea’s President, announced that they will double the stimulus package to $80bn due to COVID-19. This explains KOSPI’s positive “explosion”. In the meantime, the G20 meeting will take place on Thursday by a video conference and it is expected to discuss the coronavirus epidemic. Additionally, G20 finance ministers and central bankers will have a separate video conference to organize a plan under the fear of anticipated global recession.
EU pre-opening is expected to be positive as Italy announced a smaller number of deaths and new infections than the day before even though Spain, France, and UK are following Italy with 2 weeks delay. At least it may be a good indication that the coronavirus outbreak is flattening in Italy. Yesterday Boris Johnson, UK PM, declared national lockdown starting from Monday midnight as an immediate action to contain the virus spread. Similarly, the US futures market indicates a strong opening even though its too early for conclusions. SP500 is currently testing a major long-term support zone (2100-2200).
SP500 weekly chart
Reviewing the forex market, EURUSD violated the triangle to the upside (mentioned yesterday) and is heading to the resistance of 1.09. AUDUSD is still in the mode of reversal and is trying to break out from the 0.596 level (tested 3 times from below). USDJPY is still moving within the rising channel but has created 3 peaks below 111.328 which needs attention from the traders.
EURUSD 60m chart
AUDUSD 60m chart
USDJPY 240m chart
Checking the ZuluTrade’s Traders Sentiment, the community is buying USDJPY while is selling GBPUSD and USDCAD.
Today’s economic calendar includes the following news:
EuropeanMonetaryUnion – Markit PMI Composite (Mar)
UnitedKingdom – Markit Services PMI (Mar)
Disclaimer
The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.