Forex Marketz Daily Forex News – Fully Markets Update
Wall Street had another rough day on Wednesday as the Dow Jones Industrial Average (DJIA) shed over 1,400 points and entered bear market territory.
Traders are grappling with the rapid spread of the Covid-19 contagion as well as the economic damage it is causing.
They also were not very impressed with vague comments from President Donald Trump who announced a travel ban to and from the European Union. The rest of his commentary was vague in regards to fiscal assistance.
The Dow Jones (DJIA) shed almost six percent or 1,464.94 points on the day. The Dow closed at 23,553.22 for the days as it officially entered bear market territory. The 30 stock average is now down twenty percent from its record high set last month and has officially ended a bull run that started in 2009.
The global bellwether, the S&P 500 was down 4.9 percent and just short of entering a bear market. The tech heavy Nasdaq composite lost 4.7 percent and is now down 19 percent from its all-time high.
Dow Jones Plummets as President Donald Trump Talks
Overnight, U.S. President Donald Trump gave a televised addressed about the spread of the coronavirus (COVID-19). He announced a travel ban to and from the European Union which will last for thirty (30) days. He said that this ban is a bid to contain the spread of what he termed a “foreign” virus from countries with “open border” policies.
The rest of the president’s speech was mostly vague rhetoric. Trump said that he will instruct the Small Business Administration to “provide capital and liquidity” to small businesses. He also said that he would ask Congress for tax relief.
Traders Wait on the ECB Monetary Policy Announcement
The European Central Bank (ECB) will announce their monetary policy and rate decision. Traders will closely read their monetary policy statement for any clues about the future of rates and quantitative easing (QE) as the Eurozone struggles to see economic growth and price growth.
The European Central Bank is expected to further insulate the Eurozone economy from the economic damage being caused by the COVID-19 virus. On the Eurozone economic calendar, Italy will release their quarterly unemployment rate.
