I am travelling today so just have time for a curtailed report.
With the coronavirus now reaching pandemic status markets remain on the defensive with the US indices and oil prices closing down by around 4.5%. On the other hand, the US$ and yields both made up some ground, while Gold and Silver ended down by around 0.75%.
In the UK, the UK chancellor announced a £30 billion package in the budget, which included £12 billion of measures for the NHS, public services and small businesses in a coordinated move with the BOE which cut interest rates and announced a stimulus package.
Looking ahead, Donald Trump will make a statement on the coronavirus during Asian trading so it could be a volatile ride in the next few hours. The Australian Government will also announce a stimulus package today. The main economic news will come from the ECB Meeting where a substantial stimulus package is presumably the only possible outcome.
From the look of the trend-table, the only way is down for stock markets although the US$ does look a little more underpinned. Note that US$Jpy in particular is well off its trend lows. As before, the Aud$ looks particularly vulnerable and selling rallies is favoured.
Economic data highlights will include:
Thur: Japan PPI, Australian Consumer Inflation Expectation, China Foreign Direct Investment, EU Industrial Production, ECB Interest Rate Decision/Statement/Press Conference, US PPI, Jobless Claims
|1 Hour||Turning Lower||Turning Lower?||Down – Bullish Divergence||Turning Neutral||Neutral – Turning Lower?||Turning Neutral|
|4 Hour||Turning Lower||Turning Higher||Turning Lower||Turning Higher||Down||Neutral – Turning Lower?|
|1 Day||Up||Down – Oversold||Turning Neutral||Down||Turning Lower||Turning Neutral|
|1 Week||Neutral||Neutral||Neutral – Turning Lower?||Neutral – Turning Lower?||Turning Lower||Turning Lower?|
|1 Hour||Neutral – Turning Higher?||Neutral – Turning Lower?||Turning Lower?||Turning Lower||Neutral – Turning Lower?||Turning Neutral|
|4 Hour||Up||Neutral – Turning Lower?||Turning Lower||Neutral – Turning Lower?||Turning Neutral||Turning Higher|
|1 Day||Possible Basing Formation||Down – Oversold||Down||Possible Topping Formation||Neutral – Turning Lower?||Down|
|1 Week||Turning Neutral||Down||Down||Up – Bearish Divergence||Neutral – Turning Lower?||Down|
|1 Hour||Turning Lower?||Neutral – Turning Higher?||Neutral – Turning Lower?||Turning Neutral||Turning Neutral||Up|
|4 Hour||Neutral – Turning Lower?||Neutral – Turning Higher?||Turning Lower||Turning Neutral||Turning Lower||Possible Basing Formation|
|1 Day||Turning Lower||Up||Neutral – Turning Higher?||Down||Up||Neutral|
|1 Week||Neutral||Turning Higher?||Neutral – Turning Higher?||Turning Lower||Turning Higher?||Turning Neutral|