Market Commentary March 23, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

The stock market drifted lower over the day session yesterday, with much more than negating the rally we have seen in the Thursday trading session. The S&P 500 and Nasdaq pulled back much of Thursday's posting 5-month highs, while the only exception was the VIX volatility index which pinned well over 20% to post a 16.48 closure. 

The main indices saw further downside progressing into the closing hour, ending the trading day at their worst posting of the session. The DJI plunged 460 points or 1.8% to close at 25,502; the S&P 500 index dived 54 points or 1.9% to finish at 2,801, while the Nasdaq nosedived 196 points or 2.5% to conclude the day with 7,642. However, the small-cap Russell 2000 had the most miserable day among the significant indices, declining by 3.62%, to close at 1506.

On the corporate front, the banking sector contributed to yesterday’s market plunge. Bank of America stock went south 4.19%, Morgan Stanley posted 3.27% drop, Citigroup Inc. showed minus 4.57%, Wells Fargo & Co traded lower by 3.11%, US Bancorp went down by 2.78%, and JPMorgan Chase dropped minus 3.02%.

Even high technology and telecommunications significant stocks which had been very strong of late stumbled in yesterday’s trading session. The Amazon posted minus 3%, Alphabet minus 2.3%, Salesforce posted negative 3.26%, Microsoft dropped 2.64%, Workday minus 3.29%, AMD minus 5.45%, Intel minus 2.53%, Nvidia minus 3.50%, Apple minus 2.07%, and Netflix minus 4.46%.

Asia-Pacific Market

The main Asian-Pacific stock market had a relatively green trading session on Friday. The chinas core Shanghai index increased 0.09% to close at 3,104; the South Korea Kospi index rose 0.09% to finish at 2,187, the Japan  Nikkei 225 index grew modest 0.85% to conclude at 21,627, Aussie ASX 200, as well as H.K. Hang Seng indices, improved 0.45% and 0.14% respectively. The Sensex index took the opposite path, sinking 0.58%) to close at 38,165.

On the economic front China and France bilateral cooperation moved to all-time highs. French exports goods such as agricultural products, luxury goods, and pharmaceutical stuff encountered a huge increase over the past several years.

The Japanese inflation number show a slowing in last month as can be witnessed in declining petro prices. The Bank of Japan is targeting a 2% mark rate in an unavoidable recession factor, which could warrant to be very difficult to reach.

European Market

The Eurozone market had a mixed day on Friday, the main indices showed solid moves to the downside on the session. The German DAX30 Index plunged by 1.6%, while the French CAC40 and the U.K.'s FTSE100 indices both dived by 2% on the day.

On the geopolitical front, Brexit’s agreement outcome is “in the hands of our British colleagues” was the talk by heads of states which supported the delay the divorce departure engagement by at least two more weeks.

Other Markets

Gold, precious metal went up 3.86 or 0.29% to close at 1,313, and Silver metal slipped $0.06 or 0.36% to finish the day at $15.42.

The crude oil market had a red trading day yesterday, as WTI crude oil declined $0.91  or 1.52% to close at $58.67, while Brent oil sank $1.32 or 1.95% to finish $66.41 on the session.

Bond market experienced unusual day seeing for the first time since 2007 US Treasury yield curve inverted - three-month rates exceeded ten-year. This is a sign many watches for as conceivably connotative of a coming major recession.

Cryptocurrency Segment

The cryptocurrency markets are anxiously anticipating the launch of Bakkt - institutional trading platform. The launch of this platform is supposed to attract a significant number of and traders investors whose engagement is obliged to propel the struggling crypto markets to the next level. Though, some traders and investors doubt whether it can deliver and live up to its expectations also earn enough to sustain its valuation.

On the other major news: The volatility and volumes of the cryptocurrency exchanges have been under the radar as "The Tie" issued a freshly published report, which advised that most revealed volumes numbers are bogus. This, in turn, puts the total volume published of Bit-Z and LBank, to have passed the first runner exchange Binance in question indeed.

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