Thursday is another red day on the global markets. As coronavirus spreads the US President Donald Trump announced a ban on all travel from the Schengen area (most of the EU countries).London Stock Exchange companies tumbled in the morning losing.
BTCUSD lost over 31% and went down to a 10-month low breaking he $6,000 support. This is said to be a result of the across the board market panic and sellout. Cryptocurrency has failed so far to become the safe harbor in case of market failure.
What is bad news for the cryptocurrency bulls and hodlers, can prove to be a great chance for margin traders.
Markets are very volatile recently, and it opens great opportunities for profitable trades. With SimpleFX WebTrader you can buy or sell (short) any asset, including major cryptocurrencies. You can adjust leverage to effectively hedge your main market positions. Go to SimpleFX and benefit from the uncertainty brought by the pandemic fears.
Millions of people worldwide are affected by coronavirus pandemic. Governments choose to act proactively and close borders, schools, and workplaces. This is a huge blow for businesses and markets.
However, the situation can change if central banks decide to release impressive stimulus. Analysts expect Trump to push the Fed towards aggressive quantitative easing.
Standard & Poor’s is free-falling, so are the major US stocks.
European stock exchanges are in the red. The prices for the main indices are at the four year low. Both German DAX30 and London FTSE100 are plummetting. Japan’s Nikkei .N225 fell 4.4% to three years low.
WHO declares pandemic
The World Health Organization (WHO) wasn’t keen to describe the coronavirus outbreak a pandemic, but they changed their mind on Wednesday. This change prompted some governments to release strick quarantine orders.
The next hours and days are going to be crucial for the markets. The sentiment may change as the sellout has been very strong, and the stimulus packages may drive the prices up in the longer run.
The drastic measures taken by some countries like the US or Italy may prove to be beneficial in containing the pandemic and bringing things back to normal. However, nobody knows whether it’s a question of several weeks or months. All these factors will be critical for the prices of stocks, oil, gold, and cryptocurrencies.
Make sure you watch the market news closely and react accordingly to the trend changes. All you need to do is fund your SimpleFX account and have the mobile trading app ready in your pocket when the right time to make a call comes.