12 Mar: Stocks lower again. Trump due to speak shortly. ECB Meeting coming up later.

12 Mar: Stocks lower again. Trump due to speak shortly. ECB Meeting coming up later.

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

EURUSD USDJPY GBPUSD USDCHF AUDUSD NZDUSD
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?

 

DXY S+P ASX200 GOLD SILVER OIL_WTI
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

 

EURJPY EURGBP GBPAUD AUDJPY EURAUD AUDNZD
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

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