Premarket: S&P 500 & Nasdaq 100 Futures Higher on Monetary Stimulus

Summary:
• S&P 500 futures point to a positive start amid speculation for coordinated action by G7 countries. Wall Street rallied yesterday to three days high

S&P 500 futures point to a positive start amid speculation for coordinated action by G7 countries. Wall Street rallied yesterday to three days high amid the expectations of a rate cut by Fed in the next policy meeting. The Reserve Bank of Australia (RBA) delivered a 25 basis point interest rate cut to 0.50% and indicated it was prepared for more if necessary. The G7 finance ministers and the central bank governors in a teleconference noted that they are ready to use all appropriate policy tools to safeguard the global economy from the coronavirus impact.

The Dow Jones futures are 0.59% higher at 26648, while the Nasdaq futures are 0.84% lower at 8856. The S&P 500 futures are 0.40% higher at 3080, and returned above the 200-day moving average.

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European Indices Edge Higher

European indices hold in to gains amid the monetary stimulus speculation.  The DAX Index is 2.35% higher at 12,137. The European Monetary Union reported that CPI rose by 0.2% for a 1.1% year-over-year in February, slower than the 1.4% pace seen in January. The core CPI rate came up to 1.2% from 1.1%. January producer prices increased by 0.4% in December. January unemployment was unchanged at 7.4% in line with expectations. The CAC 40 is 1.78% higher at 5,428 while the FTSE 100 is 1.80% higher at 6,775. The FTSE Mib index is 1.29% higher at 21921.

Bitcoin Pair Early Gains

Cryptocurrencies retreated today after the strong rebound yesterday. The bitcoin (BTCUSD) is 1.32% lower at $8803. Litecoin (LTCUSD) is 0.75% lower at 61.00. Ripple is 2.10% lower at 0.2344 while Ethereum is 1.55% lower at 228.35.

Crude Oil Rebound On OPEC+ Production Cuts

Crude oil price rebound today amid increased expectations of OPEC+ production cuts as Russia expressed will to cooperate. Crude oil price also boosted by the hopes for central banks intervention rise. The WTI is 2.31% lower at $47.84. Brent crude oil is 0.48% higher at $51.90. Gold also managed to rebound above the 1600 mark recovering some of Friday’s heave losses. The gold price is 1.03% higher at 1605. Silver price is 0.60% higher at $16.81.

In forex markets, AUDUSD is adding 0.61% higher at 0.6570 after the RBA cut interest rates by 25 basis point to 0.50%. The US Dollar is lower against the Japanese yen and the USDJPY is 0.47% lower at 107.78. USDCHF continues lower giving up 0.15% at 0.9574.  EURGBP is 0.44% lower at 0.8690 after the better construction PMI out of the UK.