More countries are expected to announce lockdown measures in the coming days so don’t panic, Face the situation. Just believe we can overcome this situation. Countries around the world are imposing stricter rules in an effort to slow the rapid spread of COVID-19. The virus has infected more than 328,200 people and killed more than 14,300 worldwide.
Asian shares slid on Monday as more countries all but shut down in the fight against the coronavirus. Shanghai blue chips dropped 2.3%, though Japan’s Nikkei rose 0.8% aided perhaps by expectations of more aggressive asset buying by the Bank of Japan. Indian stocks are experiencing the biggest losses though, with the Sensex now down by over 11% after trading was halted earlier after hitting a circuit breaker.
Oil price started this week on a bearish note as prices slide lower over worries that the escalating coronavirus crisis could drive more shutdowns in affected countries across the world. Brent crude futures slipped 69 cents to $26.29 a barrel, while U.S. crude gained 30 cents to $22.93.
The dollar surged against many emerging market currencies, highlighting the growing sense of risk aversion across the globe. On Monday the yen is keeping higher against the rest of the major currencies bloc amid risk-off pressures in the market.
Gold prices fell on Monday as investors liquidated their positions in the safe-haven metal despite stimulus measures from global central banks to combat economic damage from the coronavirus outbreak.
The RBNZ announced additional through the new QE program worth $30bn. The RBNZ will buy NZ government bonds to help finance the fiscal efforts by the country. It will do so at the pacing of around $750m each week for the next 12 months.
Coronavirus Update: The virus has now been reported in more than 100 countries. As the number of infections continues to climb higher, Airlines cancelled more flights as Australia and New Zealand advised against non-essential domestic travel, the United Arab Emirates (UAE) halted flights for two weeks and Singapore and Taiwan banned foreign transit passengers.
GOLD: The precious metal started this week with a bearish trend. The price currently trading below $1500 and the immediate support level is $1478. On the other side break above $1500, the next resistance will be $1505 and $1518.
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Quote of the day: profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.