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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.

19 March 2020 (8:09 am IST)

18 March 2020 (10:39 pm EDT)

More than a couple of hours ago, when US stock futures opened for trade in Asia session, it was with green numbers. Dow Jones futures were up by 500 points and I thought, perhaps we will see a positive session in world stock markets after US stocks closed with negative numbers in their overnight session.

Alas, all those green numbers have turned in red and US stock futures are now trading with their usual, highly negative numbers.

Major Asian stock markets are also trading with deep cuts, with as high as 5% margins (Kospi, South Korea).

SGX Nifty is almost 300 points down and very volatile, following every small move in US futures.

This continuous drop in world stock markets is indicating that markets are “factoring in” the effects of coronavirus on business and finance sectors. That means, when the real effect will show in quarterly results, markets will ignore poor results and trade normally.

US stock markets are continuously making “lower high” pattern on technical charts, confirming that the downtrend is still in place. The day these markets make a “higher low” on charts, buyers will start pouring in and we can expect these markets (along with the global stocks) to zoom up with double the speed.

Until that happens, investors should employ strategies to hedge their investments and day traders should follow the trend.

World stock markets are trading with highly negative numbers at the time of writing because of losses in US futures. This trend is expected to continue through the session. US stock futures will lead this trend and any change in these futures; negative or positive will dominate the global trend.