Trading last week began on Tuesday, as on Monday the US stock markets were closed due to the official weekend.

Following the opening of markets, major US stock indexes mostly declined due to the statement by Apple Inc. (AAPL) that it does not fulfill the forecast for quarterly sales. This statement again shifted the focus of market participants to the situation with coronavirus. The pressure on the market was provided by the mixed quarterly results of Walmart (WMT). The retailer said its quarterly earnings were $ 1.38 per share, which was below the analysts' average forecast of $ 1.44 per share. The company's quarterly revenue was also slightly lower than the market estimate. Meanwhile, the National Association of Homebuilders (NAR) reported that its rate of confidence for American homebuilders declined for the second month in a row in February, but remained near the highest level in 20 years. According to the association, the NAR housing market index fell to 74 in February from 75 in January.

On Wednesday, the market began to grow, reacting to China's intentions to take additional measures to strengthen its economy. China announced several fiscal and monetary measures in attempt to limit the economic damage from company suspension and tourism restrictions, and many analysts predict additional incentives, including lowering the central bank's lending base rate. In addition, investors analyzed the released reports. The report of Department of Commerce showed that US housing construction fell less than expected in January, while permits rose to almost a 13-year high, indicating a steady strengthening of the housing market amid falling mortgage rates. Market participants also drew attention to the protocol of the last meeting of the US Federal Reserve. According to the protocols of the Fed, during the meeting on January 28-29, the Fed leaders for the most part "saw an improvement in the balance of risks for economic prospects compared to the previous meeting, although they noted the persistence of a number of strong bearish risks."

The next day, the indices again appeared in the "red" zone due to the situation with coronavirus. Additional pressure on the market was made by statements by Fed vice chairman Richard Clarida, who said in the interview with CNBC that the market’s assessment of the likelihood of rate cuts is a bit unreliable. He also added that he prefers to look at the forecasts of economists, rather than the Fed futures markets. Clarida noted that most economists do not expect rate cuts in the near future from the Fed. As the FedWatch CME Group tool shows, traders take into account at least one Fed rate cut this year in quotes.

The week ended with noticeable decline, as business activity in the US stalled in February, and the pace of coronavirus spread in China and the world accelerated. A survey by IHS Markit procurement managers showed that business activity in both the US manufacturing and services sectors stalled in February as companies became increasingly worried about the effects of coronavirus. The National Association of Realtors said last month that home sales in the secondary market fell 1.3%, to seasonally adjusted annual rate of 5.46 million units. December sales were revised to 5.53 million units from previously announced 5.54 million units. Economists predicted that sales would fall by 1.8%, to 5.43 million units.

Company news

05.04.2020 50 001 clients! Read more ...
05.04.2020 Changes in the trading schedule and working hours during the Easter celebration Read more ...
03.04.2020 Change in the schedule of trading sessions in connection with the celebration of Good Friday Read more ...
31.03.2020 Stay at home! Stay healthy! Read more ...
30.03.2020 Changes to the rules for processing client applications from 4/1/2020. Read more ...
Show all

Expert view

05.04.2020 Virus vs Stock market Read more ...
05.04.2020 Crisis wanders the planet Read more ...
29.03.2020 US stock market to stabilize Read more ...
29.03.2020 Gloomy oil forecasts Read more ...
22.03.2020 US stock market in fever Read more ...
Show all

The payment services are provided by Cauri LTD, 20-22 Wenlock Road, London, N1 7GU, UK, registered number 09507138
(check https://register.fca.org.uk), Win Pay (check http://win-pay.biz).

RISK WARNING STATEMENT. TO ATTENTION OF TRADERS AND INVESTORS!

Our services include products that are traded on margin and carry a risk that you can lose more than your initial deposit. The products may not be suitable for everyone - please ensure you fully understand the risks involved. There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. It is the responsibility of the Client to ensure that the Client can accept the Services and/or enter into the Transactions in the country in which the Client is resident. If the risks involved seem unclear to you, please seek independent advice.

 

CLIENT AGREEMENT PDF
PRIVACY POLICY PDF
RISK DISCLOSURE STATEMENT PDF
REFUND AND RETURN POLICY
AML&KYC POLICIES PDF
KYT POLICY PDF
FRAUD VERIFICATION PROCEDURE PDF
REGULATIONS OF TRADING PDF
RESPONSIBLE ATTITUDE