Day Ahead: Top Things to Watch for March 16

• 2020-03-16
• Traiding Idea

On the first trading day of the week, we see the fall in US Treasury yields and stock index futures. The Federal Reserve did not wait for Wednesday's interest rate meeting and cut interest rates again. The central bank lowered interest rates by 1%, and the current US interest rate has ranged from 0% to 0.25%. The US Federal Reserve has expressed concern about the economic consequences of the Corona virus. US Treasury yields fell more than 30 basis points. The S&P 500 futures dropped 5% and reaching a daily "limit down" while US stock markets ended Friday with a strong upside.

Today, Japan's stock market is positive in Asia, but other regional stock markets have fallen. In the past few weeks, fears of the economic consequences of the Coronavirus and investors' distrust have led to sharp and rapid fluctuations in the market. From a fundamental analysis point of view, under the current circumstances, due to market volatility, the life span of the analysts is shortened, and investors need to be more careful in managing the loss and volume of transactions.

China's economic data were released today. In China, industrial production and retail indices have fallen, and In Australia, the stock market has dropped more than 7%. The Reserve Bank of Australia has announced that it is ready to inject liquidity into the market by purchasing government bonds. In the Forex market, the Japanese yen reacted negatively to the US Federal Reserve cuts rates. In addition to lowering interest rates by 1%, the US Federal Reserve intends to buy $ 700 billion worth of bonds.

The Federal Reserve has also reduced the banks' Reserve Requirement Ratios to zero. Chair of the Federal Reserve announced that he still opposes negative interest rates.
Today, the Bank of Japan held an unexpected meeting to set interest rates, while the meeting was scheduled for next week. In addition to the Federal Reserve, the Reserve Bank of New Zealand cut interest rates from 1% to 0.25%. In the crude oil market, prices are still falling.