Stocks are plummeting
It looks like Thursday will be another day of gains for the Swiss franc and the Japanese yen, as investors seek the refuge of the two safe haven currencies. Last night’s address to the nation, by Donald Trump, left the markets even more worried than they already were; S&P 500 futures are currently down 5.75%. A Europe travel ban and the labelling of the virus as foreign, are seen by some as nothing more than diversion tactics to distract from the fact that so far the promised economic plan to deal with the coronavirus fallout is yet to materialise, despite Trump’s promise that he would deliver it last Tuesday. The markets are increasingly concerned by the negative impact the coronavirus will have on the global economy and the political weaponization of the virus by the American president exacerbated that feeling even more. In this environment, further gains for safe havens and more losses for risk related assets are likely.
Ricardo Evangelista – Senior Analyst, ActivTrades
Stocks are plummeting as risk off continues to dominate. The combination of coronavirus and an oil war is weighing heavily on oil prices, with investors not betting on a quick resolution of the dispute between Russia and Saudi Arabia.
In this hugely volatile scenario, it is difficult to find technical price levels for WTI. That said, in the last few hours the barrel is trying to build a support at $30.90, while the next key level would be the psychological threshold of $30.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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