Futures indicate continuing slump in global equities as Brent plunges

March 9, 2020

By IFCMarkets

All three US benchmarks finish the week in positive territory

US stock market ended lower on Friday amid reports US coronavirus cases increased. All three US benchmarks however managed to record a weekly gain. The S&P 500 lost 1.7% to 2972.37, booking a 0.6% gain for the week. Dow Jones industrial retreated 1.0% to 25864.78. The Nasdaq ended 1.9% lower at 8575.62. The dollar weakening continued despite a better-than-expected jobs report from the Labor Department showing the US created 273,000 new jobs in February. The 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 0.6% to 96.02 and is sharply lower currently. Futures on stock indexes point to lower openings today.

CAC 40 led European indexes retreat

European stocks ended sharply lower on Friday. Both EUR/USD and GBP/USD cotninued climbing on Friday with both pairs sharply higher currently. The Stoxx Europe 600 Index lost 3.6%. The DAX 30 dropped 3.4% to 11541.87 Friday. France’s CAC 40 plunged 4.1% and UK’s FTSE 100 slumped 3.6% to 6580.61.

Australia’s All Ordinaries Index leads Asian indexes plunge

Asian stock indices are sharply lower today. Nikkei sank 5.4% to 19632.5 as yen accelerated its climbing against the dollar despite a downward revision of Q4 GDP in final reading. China’s markets are falling : the Shanghai Composite Index is down 3% while Hong Kong’s Hang Seng Index is 4.6% lower. Australia’s All Ordinaries Index plummeted 7.3% despite reversal in Australian dollar’s climb against the greenback.

Brent plunges as Saudi Arabia plans to increase output

Brent futures prices are in retreat after a more than 25% plunge this morning following weekend reports Saudi Arabia planned to boost crude-oil production to between 10 million and 11 million barrels per day. Prices fell on Friday as OPEC meeting ended in disarray following Russia’s rejection of a plan for additional output cuts: Brent for May settlement dropped 9.4% to $45.7 a barrel Friday, plunging 8.9% for the week.

Gold rebound continues as Dollar weakening accelerates

Gold prices are extending gains today. Gold for April delivery added 0.3% to $1672.40 on Friday.


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