Countries Are Trying to Stimulate the Economy. US Stock Market Is Declining

The US dollar is recovering against a basket of major currencies. The dollar index (#DX) closed in the green zone (+1.01%). The US currency was supported by the fact that yesterday the US Federal Reserve tried to stop the market collapse by offering short-term loans $1.5 trillion worth. Also, the regulator gave a signal about the so-called start of a new wave of quantitative easing. In turn, investors also expect another reduction in the Fed interest rate.

The ECB has approved fresh stimulus measures and temporarily reduced capital requirements for banks to help the Eurozone cope with the crisis. The central bank increased its quantitative easing program by €120 billion by the end of the year. Also yesterday, the ECB decided on the interest rate. As experts forecasted, the regulator left interest rates unchanged.

The "black gold" prices are recovering after a significant collapse at the beginning of the week. Currently, futures for the WTI crude oil are testing the $33.10 mark per barrel. At 19:00 (GMT+2:00), Baker Hughes US rig count will be published.

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-9.57%), #DIA (-10.06%), #QQQ (-9.17%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 0.85-0.86%.

• - Michigan consumer sentiment and expectations at 16:00 (GMT+2:00).

by JustMarkets, 2020.03.13

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.