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dowindomarket-blog · 4 years

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Dow Jones Futures Drop: BoE Meeting And U.S. Jobless Claims In Focus

The Dow Jones futures are trading lower by 132 points. The bulls are losing control of the price because the Dow Jones Industrial Average has failed to cross above the 200-day smooth moving average (SMA) on a daily time frame. The longer-term time frame, the weekly chart, also shows that the Dow price has failed to win the war against the 50 and 100-week SMAs. If the Dow Jones price fails to cross above the two important moving averages and the Dow remains below them, the door is likely to be wide open for another test of Covid-19’s stock market crash.

The S&P 500 Futures also show signs of weakness and trading lower by 21 points. The week that started with a lot of optimism and hope has lost its mojo. The S&P 500 stock index is still trading above the 200-day SMA on a daily time frame and it is showing a lot better bull strength than the Dow Jones Index.

The Federal Reserve’s chairman, Jerome Powell confirmed once again yesterday in his testimony that certain jobs such as hospitality may not come back quickly. Hence workers in those sectors may need some more help. This echoes the same message that Democrats have been using in order to get more fiscal help. He urged the policymakers to extend the extra $600 in weekly unemployment benefit because, in the absence of this, it could create more damage. The Fed chairman was optimistic about the current recovery and he believes that things are likely to get better than many are anticipating.

The NASDAQ index was the champion again. The NASDAQ stocks aided the index to close the day with a gain of 0.33%.

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dowindomarket-blog · 4 years

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Dow Futures Lower As Concern Mount Over Jobless Claims, Demonstrations

The Dow Jones futures are trading lower today after the dow scored another stellar rally yesterday. Investors are still largely immune to the on-going riots and looting on the streets of the U.S. Although some concerns about riots begin to surface today. Traders are more enthusiastic about reopening the economy. The unprecedented stimulus levels of stimulus and hope of more possible support are fuelling the coronavirus stock market rally.

The European Central bank is expected to announce another bazooka today in terms of extra stimulus but there is no hope of interest rates moving any lower as they are already sitting below zero. The US ADP economic data confirmed that the worst may be over for the US labour market and Americans may have good days ahead of them if Trump can unite the nation. It is the weekly jobless claims data that it is going to inspire the dow jones stock price today.

The Dow Jones stocks have been lagging in terms of coronavirus stock market rally because the Nasdaq index has been the strongest out of the three major indices, the S&P 500, the Dowand the Nasdaq. The S&P500 stocks hold the second position in terms of Coronavirus rally and the Dow index is the weakest.

ECB Meeting And Stimulus

Today is the European Central Bank (ECB) meeting day. The ECB is expected to expand its stimulus program with an additional 500 billion euros of asset purchases in its meeting later today. The ECB isn’t expected to change its ultra-low interest level but anything less than the widely anticipated stimulus package could set the shockwaves in the European stock market. The ECB’s president Christine Lagarde needs to make sure that her tone and words are crafted carefully so that she can calm the peripheral bond markets.

The coronavirus lockdown measures in the European countries are being eased off but the situation is far from being normal and it is likely to remain that way for some period of time. Therefore, the ECB doesn’t have the choice to delay the stimulus package any further.

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dowindomarket-blog · 4 years

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London midday: Stocks in the red as investors eye Trump conference

London stocks were still firmly on the back foot by midday on Friday amid growing tensions between the US and China.

The FTSE 100 was down 1% at 6,160.00 as jitters set in after US President Donald Trump announced that he would be holding a press conference on Friday “on China” but gave no further details.

Spreadex analyst Connor Campbell said: “With China’s parliament rubber-stamping the new national security laws set to be imposed on Hong Kong, sending armed police to swarm the streets of the administrative region in an attempt to combat pro-democracy protests, Donald Trump has promised to hold a press conference this Friday.

“It will potentially outline the actions the President is set to take against China, the said same vague actions he threatened if China passed the security laws earlier in the week.

“This has been seen by investors as a step towards escalation, especially since the impending press conference was preceded on Wednesday by the House passing a bill condemning China’s detention and torture of Uighur Muslims.”

In equity markets, travel stocks were under the cosh, with Carnival, easyJet and British Airways parent IAG all lower.

Rolls-Royce suffered heavy losses after Standard & Poor’s downgraded its long and short-term credit ratings to BB and B, respectively, with a negative outlook.

On the upside, AstraZeneca rallied as the pharmaceuticals giant said a clinical trial of its Tagrisso drug to treat non-small cell lung cancer reduced the risk of disease recurrence or death by approximately 80%.

B&M European Value Retail racked up healthy gains after it reported a rise in sales in the first eight weeks of the new fiscal year as locked-down Britons took advantage of the sunny weather to do home repairs and gardening during the coronavirus crisis.

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dowindomarket-blog · 4 years

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S&P 500, Dow Indices On Course For Best May Performance Since 2009; USD Lags

The US dollar suffered one of its worst days since the dawn of the pandemic on Tuesday as commodity FX surged on a better risk tone. US indices eased off the highs, but the S&P 500 and Dow Jones Industrial Average are on course to complete the best May performance since 2009.

The Australian dollar was the top performer while the US dollar lagged. USD sustained its biggest percentage daily drop since Mar 27. The Richmond Fed is due on Wednesday.

Closely-watched technical levels in the commodity currencies and elsewhere gave way on Tuesday but some late-day price action raised new questions.

USD/CAD slowly turned into a textbook consolidation pattern in the past six week and after testing 1.3850 three times, the pair finally broke down in a 220 pip tumble. One of the catalysts was a reasonably optimistic take on loan-loss provisions from one of Canada’s largest banks. But Ashraf tells me to beware of the 1.3760/70 confluence support.

The main theme was better risk sentiment as the S&P 500 tested above 3000 and its 200-day moving average. Late in the day some skepticism crept in. Oil failed to hold the bulk of its gains and the S&P 500 halved the rally to finish back below the 200-dma.

The catalyst was a report saying the US plans sanctions on Chinese individuals and companies in retaliation for the Hong Kong security law. In addition, economic data was mixed with consumer confidence at 86.6 vs 87.0 expected and virtually flat compared to a month earlier. On the other side of the ledger was a very strong new home sales report, suggesting that low interest rates are pulling in buyers.

Elsewhere the Australian dollar also edged above the 200-dma and completed the virus round-trip to return to mid-February level Looking ahead, the technicals will remain front-and-centre including EUR/USD, which is having yet-another look at resistance in the 1.1000/20 range.

On the economic data front, the US calendar is lighter Wednesday but features the Richmond Fed for May. The consensus is an improvement to -40 from -53.

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dowindomarket-blog · 4 years

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Gold faces weekly decline on signs of growth picking up

Gold steadied on Friday as an escalation in U.S.-China tensions underpinned bullion’s safe-haven appeal, although positive economic data and easing lockdowns in some countries set up the precious metal for a weekly drop.

Spot gold was trading at $1,727.39 per ounce by 0248 GMT, having dropped 1.4% on Thursday. U.S. gold futures rose 0.3% to $1,726.50.

Bullion had rallied to its highest since October 2012 on Monday, but has since lost ground and is now heading for a 0.8% weekly decline.

“The fundamentals are still supportive for gold. But, there was a slight improvement in the manufacturing activity in Europe and the U.S., the PMI data last night was slightly better,” said Avtar Sandu, a senior commodities manager at Phillip Futures.

The euro zone economy’s contraction eased in May, the Purchasing Manager Index (PMI) survey showed. Germany’s private sector recession also improved on loosening of lockdown curbs that were put in place to prevent the spread of the coronavirus.

However, U.S.-China frictions dampened risk appetite, underpinning bullion and offsetting pressure on the metal’s prices from the slightly better data.

Asian shares fell after Beijing’s plan to impose a new national security legislation on Hong Kong drew a warning from U.S. President Donald Trump.

Gold has held ground above the key $1,700 per ounce level, building impetus to reach its 2011 peak in the coming quarters, Fitch Solutions said in a note.

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dowindomarket-blog · 4 years

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Dollar weak as euro rises on Franco-German proposal for recovery fund

The U.S. dollar edged lower against the euro on Tuesday as the common currency added to Monday’s gains following news of a Franco-German proposal for a fund that would offer grants to European Union regions and sectors hit hardest by the coronavirus pandemic.

Encouraging results from the trial of a vaccine for COVID-19 reduced demand for safe havens and the greenback rose to a near one-month high against the Japanese yen..

Germany and France, whose agreements usually pave the way for broader EU deals, proposed that the European Commission borrow 500 billion euros ($550 billion) on behalf of the whole EU. The Commission is expected to outline their proposal before a European summit scheduled for May 27.

The eurowas 0.25% higher against the greenback at $1.0942, on pace for a two-day gain of about 1 percent.

“The Franco-German proposal represents a material step forward towards harnessing joint fiscal capacity to provide sustained fiscal stimulus to support the economic recovery,” said Lee Hardman, currency analyst at MUFG.

The common currency was also supported by a survey showing German investor sentiment improved much more than expected in May as concerns eased about the impact of the coronavirus pandemic on Europe’s largest economy.

The greenback found little support from data showing U.S. homebuilding dropped by the most on record in April.

The U.S. currency, which draws safe-haven flows when risk appetite falls, has assumed a softer tone as investors took heart from encouraging early-stage data for a potential coronavirus vaccine.

“The USD is a safe haven just like the CHF or JPY and it was safe havens under pressure from yesterday morning straight through to now,” said Brad Bechtel, global head of FX at Jefferies.

Governments scaling back lockdown restrictions has also helped investors grow optimistic that economies could soon return to normal.

The Australianand New Zealand dollars hung onto hefty gains on Tuesday amid progress on reopening the global economy and optimism about an eventual vaccine.

Against the Japanese yen, which tends to draw investors during times of geopolitical or financial stress as Japan is the world’s biggest creditor nation, the dollar rose 0.55% to a near one-month high.

The pound rose 0.49% against the dollar, a small recovery relative to its recent seven-week lows, as sterling is held down by Brexit risks and speculation about negative rates.

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dowindomarket-blog · 4 years

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Japan shares higher at close of trade; Nikkei 225 up 1.49%

Japan equities were higher at the close on Tuesday, as gains in the Paper & Pulp, Railway & Bus and Real Estate sectors propelled shares higher.

At the close in Tokyo, the Nikkei 225 added 1.49% to hit a new 1-month high.

Biggest losers included Softbank Group Corp. (T:9984), which lost 2.75% or 127.0 points to trade at 4494.0 in late trade. Nichirei Corp. (T:2871) declined 2.69% or 81.0 points to end at 2934.0 and Maruha Nichiro Corp (T:1333) shed 1.84% or 42.0 points to 2246.0.

Advancing stocks outnumbered falling ones by 2726 to 901 and 151 ended unchanged on the Tokyo Stock Exchange.

The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was unchanged 0% to 30.67.

In commodities trading, Crude oil for July delivery was up 1.14% or 0.36 to $32.01 a barrel. Meanwhile, Brent oil for delivery in July rose 1.18% or 0.41 to hit $35.22 a barrel, while the June Gold Futures contract rose 0.01% or 0.10 to trade at $1734.50 a troy ounce.

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dowindomarket-blog · 4 years

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Dow futures fall more than 100 points amid concerns over reopening the economy

Stock futures fell on Sunday night as traders weighed the reopening of the economy along with brewing tensions between China and the U.S.

Dow Jones Industrial Average futures were down by 152 points, pointing to a Monday opening decline of around 147 points. S&P 500 and Nasdaq 100 futures also pointed to losses at the open on Monday for the two indexes.

States across the U.S. are letting nonessential businesses reopen and are easing stay-at-home orders in an effort to restart the economy after the coronavirus forced a near global halt in economic activity. However, this easing comes as data from the World Health Organization showed the U.S. had its deadliest 24 hours between Thursday and Friday.

“The next 2-4 weeks are critical for both the economic crisis and the health crisis,” said Marc Chaikin, CEO of Chaikin Analytics. “The biggest risk to the stock market is a premature reopening of the U.S. economy. If rising COVID-19 curves reemerge and economies are shut down again the damage to the stock market’s psyche will be dramatic.”

Warren Buffett said his business conglomerate, Berkshire Hathaway, sold all of its airline holdings because of the coronavirus. While the legendary investor was optimistic long term on the America at the Berkshire annual meeting, the move shows his concern that the pandemic has changed certain industries permanently and could be a sign that other investors are too optimistic about the economy returning to normal quickly.

Stocks notched their best monthly performance in over 30 years in April in part because of hopes of an economic reopening. Last month, the S&P 500 rallied 12.7%.

Increasing hopes of a possible treatment from Gilead Sciences also lifted sentiment last month. On Sunday, CEO Daniel O’Day remdesivir — Gilead’s antiviral drug — will be available to coronavirus patients this week.

More than 3.4 million cases have been confirmed globally, including over 1.1. million in the U.S. alone, according to data from Johns Hopkins University.

But investors are also grappling with worries over another spat between China and the U.S. On Sunday, Secretary of State Mike Pompeo said there was a “significant amount of evidence” connecting the coronavirus to a lab in the Wuhan region of China.

Those comments came after National Economic Council Director Larry Kudlow said Friday that China will be “held accountable” for the coronavirus. Earlier in the week, President Donald Trump said he was considering imposing tariffs on China for its handling of the outbreak.

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dowindomarket-blog · 4 years

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Gold dips as dollar holds firm; US jobs data awaited

Gold prices dipped on Thursday as the dollar held firm, while investors awaited key U.S. jobless data amid mounting signs of a recession due to the worsening coronavirus outbreak.

Spot gold fell 0.3% to $1,586.24 per ounce by 0640 GMT, after rising 1.2% on Wednesday. U.S. gold futures rose 0.6% to $1,600.20 per ounce.

The metal “is primarily in a consolidation phase more than anything else and is not likely to move much until U.S. jobs data comes in,” said Avtar Sandu, a senior commodities manager at Phillip Futures, adding that the dollar weighed on the market.

The greenback held onto overnight gains as investors rushed to the security of the world’s most liquid currency.

The metal is taking cues from other markets in the short term, but “fundamentals are still supportive in the long run” amid quantitative easing and lower interest rates, Sandu said.

Factories fell quiet across much of the world in March, with sharp slowdowns in Germany and Japan overshadowing a modest improvement in China.

Gold is considered an attractive investment during times of economic uncertainty, and lower interest rates reduce the opportunity cost of holding the non-yielding bullion.

The World Health Organization’s director-general, Tedros Adhanom Ghebreyesus, said on Wednesday that his agency, the World Bank and the International Monetary Fund backed debt relief to help developing countries cope with the pandemic’s social and economic consequences.

Asian equities fell after a rise in the U.S. coronavirus death toll, while investors braced for a spike in weekly U.S. jobless figures due at 1230 GMT.

The number of Americans filing claims for unemployment benefits likely shot to a record high for a second week in a row as more jurisdictions enforced stay-at-home measures. Investors also awaited U.S. non-farm payroll data due on Friday.

Gold saw mild profit-booking, but prices could spike if U.S. employment data comes weak, said Jigar Trivedi, commodities analyst at Anand Rathi Shares and Stock Brokers in Mumbai.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.18% to 968.75 tonnes on Wednesday, their highest since October 2016.

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dowindomarket-blog · 4 years

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Japan shares lower at close of trade; Nikkei 225 down 4.50%

Japan equities were lower at the close on Wednesday, as losses in the Paper & Pulp, Railway & Bus and Real Estate sectors propelled shares lower.

At the close in Tokyo, the Nikkei 225 fell 4.50%.

The biggest gainers of the session on the Nikkei 225 were NEC Corp. (T:6701), which rose 0.89% or 35.0 points to trade at 3980.0 at the close. Mitsui Fudosan Co., Ltd. (T:8801) added 0.40% or 7.5 points to end at 1878.0 and Nippon Yusen K.K (T:9101) was up 0.23% or 3.0 points to 1289.0 in late trade.

Biggest losers included Nippon Suisan Kaisha, Ltd. (T:1332), which lost 9.00% or 43.0 points to trade at 435.0 in late trade. Okuma Corp. (T:6103) declined 8.75% or 305.0 points to end at 3180.0 and Recruit Holdings Co Ltd (T:6098) shed 8.57% or 239.5 points to 2556.5.

The NikkeiVolatility, which measures the implied volatility of Nikkei 225 options, was unchanged 0.00% to 55.79.

In commodities trading, Crude oil for May delivery was down 0.78% or 0.16 to $20.32 a barrel. Meanwhile, Brent oil for delivery in June fell 4.67% or 1.23 to hit $25.12 a barrel, while the June Gold Futures contract rose 0.54% or 8.55 to trade at $1605.15 a troy ounce.

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dowindomarket-blog · 5 years

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Sensex slips 1,375 pts, financials hit; Nifty ends at 8,281

Equity markets witnessed yet another weak session on Monday as the coronavirus (Covid-19) cases in India continued to rise despite nationwide lockdown. So far, confirmed cases in India have reached 1,071 while 29 people have died due to the disease.

Further, weak global cues such as fall in global markets and plunge in crude oil prices, too, adversely impacted the investor sentiment.

The S&P BSE Sensex today slipped 1,375 points or 4.61 per cent to settle at 28,440. Bajaj Finance (down 12 per cent) emerged as the biggest loser on the index while Tech Mahindra was the top performer – up 5 per cent.

HDFC, HDFC Bank, ICICI Bank, and Reliance Industries (RIL) contributed the most to the index’s losses.

Market breadth was in favour of declines as out of 2,453 companies traded on the BSE, 1,347 declined and 934 advanced while 172 remained unchanged.

Among individual stocks, Abbott India hit a new high in a weak market amid report that Abbott Laboratories, USA, the ulitmate holding company, has received the approval to launch 5-minute coronavirus (COVID-19) test for use almost anywhere. Abbott India is a subsidiary of Abbott Laboratories of USA. The stock ended at Rs 15,400 apiece on the BSE, up around 9 per cent.

On the NSE(nifty share price), frontline index Nifty ended(nifty index) at 8,281, down 379 points or 4.38 per cent. Volatility index India VIX increased 1.53 per cent to 71.46 levels. On the sectoral front, barring pharma and FMCG, all the indices ended in the red. Nifty Bank tumbled over 6 per cent to 18,760 levels while Nifty Finacial Services pack tanked around 7.5 per cent to 9,029-mark.

In the broader market, Nifty Midcap 100 index(nifty chart) slipped 2.8 per cent to 11,435 levels and the Nifty SmallCap 100 index(nifty meaning) lost 2.3 per cent to 3,485 levels.

Global Markets

Asian shares slid on Monday as fears mounted that the global coronavirus shutdown could last for months although markets regained some lost ground late in the session with Australia posting a standout jump. US and European futures also turned upwards in the Asian afternoon, with E-Mini futures for the S&P 500 up 1.1%, again after earlier losses, EUROSTOXXX 50 futures rallying 2% and FTSE futures 1.5%.

In commodity market, Crude oil fell sharply with US crude briefly dropping below $20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last months and demand for fuel could evaporate further.

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dowindomarket-blog · 5 years

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France stocks higher at close of trade; CAC 40 up 2.51%

France stocks were higher after the close on Thursday, as gains in the Foods & Drugs, Gas & Water and General Financial sectors led shares higher.

At the close in Paris, the CAC 40(cac futures investing) rose 2.51%, while the SBF 120 index added 2.60%.

The best performers of the session on the CAC 40(cac futures price) were Airbus Group SE (PA:AIR), which rose 20.46% or 12.28 points to trade at 72.29 at the close. Meanwhile, Safran SA (PA:SAF) added 12.12% or 9.94 points to end at 91.92 and Capgemini SE (PA:CAPP) was up 9.18% or 6.66 points to 79.20 in late trade.

The worst performers of the session were Publicis Groupe SA (PA:PUBP), which fell 6.05% or 1.57 points to trade at 24.36 at the close. WFD Unibail Rodamco NV (AS:URW) declined 2.83% or 1.64 points to end at 56.34 and EssilorLuxottica SA (PA:ESLX) was down 2.14% or 2.40 points to 109.65.

The top performers on the SBF 120 were Natixis (PA:CNAT) which rose 23.13% to 3.85, Airbus Group SE (PA:AIR) which was up 20.46% to settle at 72.29 and Europcar Groupe SA (PA:EUCAR) which gained 16.05% to close at 1.67.

Rising stocks outnumbered declining ones on the Paris Stock Exchange by 367 to 222 and 67 ended unchanged.

The CAC 40VIX, which measures the implied volatility of CAC 40(cac futures trading hours) options, was down 3.67% to 48.77.

Gold Futures for April delivery was up 1.28% or 20.95 to $1654.35 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in May fell 7.39% or 1.81 to hit $22.68 a barrel, while the May Brent oil contract fell 4.24% or 1.16 to trade at $26.23 a barrel.

EUR/USD was up 1.32% to 1.1024, while EUR/GBP fell 0.88% to 0.9075.

The US Dollar Index Futures was down 1.32% at 99.665.

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dowindomarket-blog · 5 years

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DAX 30 Daily Forecast

DAX appears(dax future live) to be establishing a short term sideways trend to ease oversold conditions.

We filled the gap at 8550/8600. Shorts were stopped above 8700 for 8800/10 & 9000/9050…we topped exactly here overnight as I write.

Reports will be updated at about lunchtime GMT if necessary.

DAX 200(dax future investing) hour MA resistance at 9000/30 should be important today but above here retests yesterday’s high at 9087. We meet quite strong resistance at 9150/9200 but above 9250 meet a selling opportunity at 9350/9400. Try shorts with stops above 9500.

Holding below 9000/30 targets 8920/8880 then 8740/00. Expect good support at 8630/00 & the downside is likely to be more limited now. However below 8550 risks a slide to 8450/8400 & 8300/8250.

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dowindomarket-blog · 5 years

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London open: Stocks plunge again as US stimulus deal stalls

It was a bloodbath again in London’s equity markets amid growing concerns about the impact of the coronavirus, with US Senate deadlock over stimulus souring the mood further as investors waded through another deluge of Covid-19 updates.

At 0830 GMT, the FTSE 100 was down 4.6% at 4,951.09.

Spreadex analyst Connor Campbell said: “Europe’s meagre rebound managed at the end of last week was quickly wiped out come Monday morning, as investors woke up to partisan deadlock over the proposed US stimulus plan.

“Arguing, in the words of Chuck Schumer, that the $1.8 trillion package is a ‘large corporate bailout with no protections for workers and virtually no oversight’, the Democrats blocked the bill on Sunday night, with a 47-47 split leaving it short of the required 60 votes.

“Even if the reasons behind the Democrats’ intransigence are sound, America’s inability to move things forwards stands in contrast to many of its now free-spending peers, and has sent the market into another tailspin.”

On the corporate front, the Covid-19 updates kept rolling in.

Oil giant Shell was in the red after saying it was cutting capital expenditure, underlying operating costs and postponing the next phase of its share buyback to conserve cash in the face of the Covid-19 pandemic. The company said it would cut underlying operating costs by $3bn – $4bn a year over the next 12 months compared to 2019 levels and reduce cash capital expenditure to $20bn or below for 2020 from a planned level of around $25bn.

Associated British Foods slumped as it said Primark’s decision to close all its stores will cost €650m a month in lost sales. ABF said it was cutting costs at Primark and that these measures together with government support should allow it to recover about half of operating costs.

Broadcaster ITV lost ground after it scrapped its dividend and withdrew market guidance as the coronavirus crisis ate into advertising revenues and forced the broadcaster to put productions on hold.

Transport operator Stagecoach slid as it issued a profit warning and said it was unlikely to pay any further dividends as the coronavirus pandemic hit passenger numbers.

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dowindomarket-blog · 5 years

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Dow closes below 20,000 after stock selloff trips circuit-breaker and investors gauge government response to coronavirus

U.S. stocks finished sharply lower again Wednesday, but off session lows after Congress passed the first of two planned bills providing some relief from the economic damage the coronavirus pandemic is inflicting on businesses and consumers.

The Dow Jones Industrial Average(dow futures price) shed another 6.3% and has now erased most of its gains since President Donald Trump’s inauguration on January 2017. The benchmark S&P 500 index(s&p futures price ) fell to close at its lowest level since December 2018

Stocks skidded on worries that the coronavirus pandemic will mean a prolonged lockdown of several nations, potentially leading to defaults not just across major corporations but also small businesses that may struggle to survive a sharp drop in revenues over the next few months.

“What’s scaring the American people and corporate America now is the gradual rollout” of business closures, said Bill Ackman, chief executive officer at Pershing Square Capital Management.

Late in the session news that the U.S. Senate voted to approve a House-passed coronavirous bill that targets paid leave and free COVID-19 testing helped stocks recover some ground.

Earlier, U.S. Treasury Secretary Steven Mnuchin said the government is working on some $1.3 trillion of emergency funding, as well as other measures, to businesses and workers “right away,” in a CNBC interview.

But investors are still waiting for some evidence that the growth of global Covid-19 infection rates is peaking. Infection rates in China peaked in late February but the number of new cases is still rising in Europe and the U.S.

The S&P 500(s&p futures price ) has swung 4% or more in either direction for seven consecutive sessions through Tuesday’s close, topping the previous record of six days from November 1929, according to Dow Jones Market(dow futures live update) Data.

“When you decimate the restaurant industry, the travel industry, the hotel industry, the airline industry, and the cruise line industry, obviously you’re going to take a huge divot out of economic activity,” DoubleLine Capital CEO Jeffrey Gundlach said on a webcast Tuesday.

The Federal Reserve, after moving to cut its policy interest rate to nearly zero on Sunday and reviving some of its programs from the 2008 crisis, late Tuesday unveiled a commercial paper facility aimed at providing a liquidity backstop to businesses short of cash.

“Unexpected things will break and we will just have to be mindful of that,” Stephen Lee, founding principal at Logan Capital Management, told MarketWatch. “As investors, we need to get back to basics and know what we own.”

April futures for West Texas Intermediate crude US:CL, the U.S. gauge of oil prices, plunged more than 24% to settle at $20.37 a barrel on the New York Mercantile Exchange. April gold US:GCJ20 lost $47.90, or 3.1%, to settle at $1,477.90 an ounce, following a climb of 2.6% on Tuesday, a move attributed to investors needing to dump assets to cover margin calls.

In currencies, the ICE U.S. dollar index US:DXY, which tracks the greenback’s performance against a basket of its major rivals, was up 1.4%. Investors say the rush for liquidity and dollar funding has helped the dollar erase its initial drop at the end of February.

Global equity markets finished lower on Wednesday. The STOXX Europe 600 index XX:SXXP slumped 3.9%, while the U.K.’s FTSE 100 UK:UKX was down 4.1%.