ZuluTrade Blog

Massive Losses for USOil and Stock Markets!

Market View | Monday, March 9, 2020 10:33 AM GMT

One picture says 1000 words... Today many graphs say thousands of words. USOil was tumbled by 30% on Monday opening as Saudi Arabia decided to cut the crude prices and increase its production by over 10mil barrels per day within April.  During the Vienna meeting, Russia denied joining crude cuts with the rest OPEC and non-OPEC members and this caused Saudi Arabia’s reaction.

USOil 60m chart

Asian Markets suffered big losses today with NIKKEI leading the fall -5.07% and KOSPI -4.19%. Also, Shanghai Stock Exchange dropped sharply -3.01%.  The new Oil price war and the coronavirus outbreak have a major impact on every single market around the globe. Reviewing major economic data, Japan economy contracted 1.8% in the 4th quarter while private consumption fell by 2.8%.  

Heading to the EU Markets, the status remains the same, major all over the charts. UK100 opened with a big gap losing -8% similar to FTSE MIB -7.6%.  Italy is in an emergency state as they had to put 16mil people in Lombardy and many other parts of the north under quarantine. On Sunday, 133 deaths were reported reaching 366 in total.

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UK100 60m chart

Obviously, US trading pre-open trades heavily to the downside following the general bearish momentum. SP500 has opened with a gap and it currently trades around 2820 area.

GOLD and Bonds remain the same asset for the investors as XAUUSD holds its profits near to 1650 area while bonds are recording new lows almost every week.

Finally, reviewing the forex market, EURUSD continues its rally to the upside as US Dollar is getting hammered against most currencies. RSI(14) already oversold on the daily chart. Likewise, GBPUSD is trying to verify the break out of the mid-term declining channel. On the other hand, USDJPY is dropping aggressively and is heading to 100 area (major psychological round number).




Checking the ZuluTrade’s Traders Sentiment, there is a decrease in the EURUSD sellers, while buyers prevail on GBPUSD and GBPJPY.

Today’s economic calendar includes the following news:

EuropeanMonetaryUnion - Gross Domestic Product s.a. (YoY) (Q4)
EuropeanMonetaryUnion - Gross Domestic Product s.a. (QoQ) (Q4)


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