Stock markets plunge, Bitcoin declines severely

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·         Global stock markets have been hit by a massive wave of selling 

·         Bitcoin plunged below $6000 mark before rebounding 

·         NZ jobs report to draw investors’ attention in the evening 

 

Taking a look at Tuesday’s macro calendar one could say it is going to be a boring day. However, taking a look at the quotation board we can see a different picture. Stock markets around the globe decline severely after US benchmarks plummeted yesterday. NZD is a top mover amid G10 currencies ahead of the jobs report. Gold posts minor upside while oil prices remain under pressure.

 

Monday brought a panic sell-off on Wall Street that saw the Dow plunging by over 6% at the lowest point and closing at -4.6%. The gloom spread to Europe with the Dax futures seeing a similar crash and S&P500 futures heading towards the lowest levels since October.

Monday was the ugly day not only for equity investors but also for them being immersed in cryptocurrencies as Bitcoin was dropping during the past hours making a bottom a notch below $5900. From a technical point of view Bitcoin could have already bottomed as the price reversed suddenly after making the lowest point.

 

In Europe major stock indices opened significantly lower as the investors are concerned about the possible worsening of the US economy given the abrupt surge in the US Treasuries recently. The broad index of European shares Euro Stoxx 600 continued its sell-off for the seventh day in a row falling to the levels not seen since late August 2017.

 

There is no doubt that Monday was the most scariest day on Wall Street in years as the domestic indices went into free fall with Dow Jones (US30) plunging as much as 1600 points at one point, which was the biggest point decline in history when we take into account intraday trading.

In today’s economic calendar we have some figures from US and New Zealand that are worth mentioning. In the early afternoon US trade data is about to be released while later on oil traders will pay attention to the weekly API report on oil inventories. In the late evening the New Zealand’s jobs report may spur increased volatility on the FX pairs tied to NZD.