20 March 2020 (8:13 am IST)
19 March 2020 (10:43 pm EDT)
As governments all over the world start taking actions to stop the spread of coronavirus, stock markets have also showing signs of bottoming out and rising, as hopes of a quicker than expected solution of this threat to global business starts appearing.
US stock markets had a thin but positive closing in their overnight session. The tech index Nasdaq rallied highest, going up by 2.30% margin.
Today, in Asia session also, Nasdaq futures are confidently positive. This indicates that investors have started buying big tech stocks at the current levels and have confidence that selling cycle is now weak and petering out.
On technical charts also, support signs have started appearing. On 5-hour charts of major US indexes such as Dow Jones, we can see these signs. If you check 5-hour chart of this mega index, you can see that 5 candlesticks have bounced back from the same low level, creating a sideways pattern, and then 3 candlesticks have made a “higher low”.
We had written yesterday that when major stock indexes start making “higher low” pattern on their technical charts, it will indicate support to world stock markets.
Right now, all these indication from US stock markets are hinting at hope and that’s why, major stock markets are trading positive in Asia.
Except for Nikkei (Japan) all major Asian stock markets are trading positive today. Australia and South Korea markets have jumped 4% and Hong Kong markets are up by 3.80%. Shanghai (China) index is also up by nearly 1%. SGX Nifty is flat, showing that Indian stock markets could open positive.
US stock futures are mixed. Nasdaq futures are positive and S&P 500 and Dow Jones futures are marginally negative. But, as we said, the charts of these futures indexes are also support at lower levels so we can expect these numbers to turn positive later in the session.
This seems a good day for world stock markets and we can hope for better days next week.
World stock markets are expected to trade in a mixed manner, with high volatility. US stock futures will dominate the global trend and if those numbers rise considerably, we can expect a rally in global stock in this last session of a turbulent week.