News & Analysis

Overnight on Wall Street: Tuesday 24 March 2020

March 24, 2020

By Deepta Bolaky

Equity Markets

After a busy weekend digesting developments on the pandemic, investors were waiting for a breakthrough on the massive congressional spending package to combat the fallout from the coronavirus pandemic.

After the Senate Democrats blocked the multi-trillion package, there was little progress on the negotiations, leading to another day of losses on Wall Street.

Source: Bloomberg


Major US equity benchmarks closed in the red, despite the Federal Reserve stepping out of their way to act as a lender of last resort, to have credit flowing in the economy by offering direct funding to US companies:

  • Dow Jones Average Industrial lost 582 points or 3.04% to 18,592.
  • S&P500 fell by 68 points or 2.9% at 2,237.
  • Nasdaq Composite ended 19 points or 0.3% lower at 6,861.

Currency Markets

In the FX market, major currencies were mixed against the US dollar. In the US session, the focus was on the largest stimulus package of the Federal Reserve which consists mostly of:

  • The purchase of Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.
  • The establishment of loan facilities to support credit flowing to large employers
  • The establishment of a third facility, the Term Asset-Backed Securities (TAFT) to support credit flowing to consumers and businesses.
Source: Bloomberg Terminal


The US dollar index which tracks the performance of the greenback against a basket of currencies is consolidating gains around the 102 level.

After falling to multi-year lows, the Aussie dollar was firmer yesterday and was among the best performers against the US dollar. However, the Antipodean is left at the broader sentiment amid an empty economic calendar and will likely remain under pressure, given the rising number of virus cases and the quarantine measures crippling the economy. As of writing, the AUDUSD pair is trading at 0.5870.


The oil market continues to remain under extreme pressure, dragged by a simultaneous demand and supply shock. WTI was firmer on Monday on the Fed’s measures but the outlook stays gloomy. As of writing, both Brent Crude and WTI are trading in the vicinity of $27 and $23.

The Federal Reserve pumping more liquidity into the financial markets has also helped the Gold to edge higher. In such a liquidity crisis, gold was being liquidated to meet liquidity/cash requirements.

When the Fed reassured investors that they will keep supporting the economy as long as needed, the precious metal regained its haven status. The XAUUSD pair claimed back the $1,500 level lifted by the Fed measures and a weaker US dollar. As of writing, the pair was currently trading at $1,564.

XAUUSD (6-Month Chart)

Source: Bloomberg Terminal


Key Upcoming Events

Commonwealth Bank Manufacturing PMI (Australia)
Leading Economic Index (Japan)
Markit Manufacturing, Services and Composite PMI, and Constitutional Court Ruling on ECB QE Legality (Germany)
Markit Manufacturing, Services and Composite PMI (Eurozone)
ZEW Survey – Expectations (Switzerland)
Markit Manufacturing and Services PMI (UK)
Markit Manufacturing, Services and Composite PMI, and New Home Sales (US)


Wednesday, 25th March 2020
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0.317 0 0.01 0.015 0 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 2.958 0 0

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.


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