Stocks are up, bonds are up, even gold is also up on the day
- S&P 500 futures +2.7%
- Germany DAX +4.5%
- US 10-year yields down 10 bps to 1.04%
- Gold $1,506; +2.4%
- Oil $27.00; +7.0%
- GBP/USD 1.1860; +3.3%
- AUD/USD 0.5940; +3.5%
- USD/JPY 109.75; -0.9%
Over the past week or so, the market mood more often than not was sell everything and buy the dollar. Today, it is but the complete opposite as everything else is pushing higher and the greenback is the one bearing the brunt.
Relative to what has happened throughout the rest of the week though, the dollar still sits higher and I would say this doesn't mean that the carnage is over.
The market is feeling better amid global central bank action and promises by governments to help with the economic fallout caused by the virus outbreak.
The coordinated efforts are starting to bear some fruit but I would argue that this is merely helping to contain the carnage, and not reverse the whole situation in the market.
The fact remains that most countries are going into isolation and lockdown, with not much sense of how long this could possibly go on for. In Europe, the talk today is about Italy and France possibly extending their lockdowns well beyond two weeks from now.
The situation is extremely fluid and that includes in the market as well. Investors may be finding relief and some shopping for bargains amid the historic moves we have seen over the past two weeks, but I wouldn't be so sure to say that we have seen the worst yet.
