Market update – March 16/20

Wall Street suffered its biggest drop since 1987 on Monday, with the S&P 500 closing at its lowest level since December 2018, as investors fear the coronavirus pandemic is proving a tougher opponent than central banks, lawmakers or the White House are currently capable of battling.

US – S&P 500

The S&P 500 dropped another 324.89 points, the biggest single day drop since 1987.

Canada – TSX

The Canadina market dropped ~10% today, and is now done 31% from the February high.

Germany – DAX

The German DAX Index is now down over 38% since February. Note a the bottom of the chart, the Relative Strength Index is at 10.47, an incredibly low reading. telling us this market is extremely oversold.

US Dollar

Global capital has been flowing into the $US, seeking a safe-haven.

Canadian Dollar

Canadian dollar drops to its lowest level in over 4 years. Being a commodity based currency, the fears of a global recession have hit commodity prices hard.

Euro

The Euro caught a bit of a bid today after falling off its recent high.

Japanese Yen

Very similar story for the Yen.

Gold

Gold has not played the role of a safe-haven because when hedge funds started to lose money in the equities they have been forced to sell EVERYTHING to cover losses and margin calls. Gold is starting to get oversold here.

Oil

The price of oil continues to fall as the coronavirus lockdown continues, pushing the global economy ever closer to a recession.

Stay tuned!