- Fed’s Powell: Pandemic hit to the economy worst since World War 2
- U.S. stocks hammered by Powell’s comments
- CFTC warns that oil futures could hit negative levels again
Bias: Risk off
U.S. stocks took another hit overnight, pressured by comments from Fed President Powell that the current Corona Virus pandemic is the worst hit to the economy since World War 2. Powell added that the near-term outlook for the U.S. economy was “highly uncertain.”
The USD drifted off in overnight trade, pressured by Powell’s comments and by continued tight ranged position adjustment. The AUD underperformed ahead of today’s employment report, while further European stimulus announcements helped the Euro.
Oil prices traded off again overnight, pressured by comments from the CFTC that oil futures could trade in negative territory again. Gold was firmer on the Powell comments.
After such a big night overnight, expect markets to take a breath in Asia today. Key data sees Australian Unemployment numbers, along with Chinese Foreign Direct Investment. Later today sees German CPI, while tonight sees the U.S. Initial Claims report