Highlights of the week: 16.03.2020-20.03.2020

The international markets are still trying to recover since Coronavirus became pandemic. On Monday, USA30 fell 12.93%, while TECH100 lost 12.32%, being the biggest one-day percentage drop in history. USA500 dropped 11.98%, erasing $2.69 Trillion in market capitalization for the day, according to S&P Dow Jones Indices.

Tuesday, the market managed to recover from the most significant drop since the 1987 market crash. Major American indices rebounded over 5%:

The Gold price was on the rise to recover from the drop-down to $1,500 and rising as high as $1,534 per ounce.

To ease the economy and to make sure that markets continue to function, the Trump administration proposed a stimulus package somewhere between $850 Billion and $1 Trillion. The package is said to include direct payments, tax breaks, and deferred payments.

Wednesday, Oil fell to a 17-years low. Crude Oil was trading down $2.03, or more than 7%, at $26.70 a barrel after dropping as low as $26.66, its weakest since late 2003. And Brent Oil was trading down 37 cents, or 1.29%, at $28.36 a barrel, after dropping to $28.05, the lowest since early 2016.

The Pound fell to its lowest level against the Dollar in over three decades as the shocks caused by the Coronavirus massacred through global markets. Sterling fell as much as 2.5% to $1.1758, surpassing even the lows it recorded in the aftermath of the 2016 Brexit vote.

At the end of the week, two major central banks decided to cut the interest rates. The Bank of England decided to cut the interest rate once more, to a historic level of 0.1% during a special meeting held on Thursday. Moreover, it will buy and additional £200bn of U.K. government and corporate bonds to help the country deal with the Coronavirus impact on the economy.

The South African Reserve Bank made the most significant interest rate cut in more than a decade as a measure to protect an already fragile economy expected to be struck by the Coronavirus. The decision was unanimous in lowering the interest rate from 6.25% to 5.25%.


Sources: investing.com, marketwatch.com, Bloomberg.com, fin24.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.