Central Banks Prepare Coordinated Response to Crisis

On Friday, the US dollar closed with a decline against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.39%). Investors expect that amid the spread of coronavirus, the Fed and the ECB will have to cut interest rates to protect the economy from the effects of the virus, which led to a fall in global stocks last week. Haruhiko Kuroda, head of the Bank of Japan, said on Monday that the regulator would take all necessary measures to stabilize markets shocked by the outbreak of coronavirus. Markets took such statements as a signal that the world's leading central banks are preparing a coordinated response to the crisis.

Chinese stocks rose by more than 3% on Monday as investors counted on Beijing's new incentive measures while lowering the number of new cases of coronavirus infection also improved their sentiment. On Friday, Chinese stocks reached their lowest monthly level since May last year due to fears of a coronavirus pandemic. Chinese manufacturers suffered significant losses in February, as Covid-19 caused a sharp decline in economic activity throughout history.

The "black gold" prices have been recovering. Currently, futures for the WTI crude oil are testing the $ 45.40 mark per barrel.

Market indicators

On Friday, there was a variety of trends in the US stock market: #SPY (-0.42%), #DIA (-1.14%), #QQQ (+0.08%).

The 10-year US government bonds yield has fallen sharply again. At the moment, the indicator is at the level of 1.06-1.07%.

• - German manufacturing PMI at 10:55 (GMT+2:00);
• - Manufacturing PMI in the UK at 11:30 (GMT+2:00);
• - ISM manufacturing PMI at 17:00 (GMT+2:00).

by JustMarkets, 2020.03.02

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.