After the rebound of yesterday, where the DOW rose by 4.9% and finished the session at 25,105.14 points, US stock futures showed a different side of the market today and suggested that more volatility is to be expected when trading begins.
Investors were in good spirits yesterday as the hope for a US fiscal response got higher and around half of the losses sustained on Monday were recovered yesterday. It is worth noting that the session of Monday was the worse one-day fall since 2008.
President Trump announced payroll tax relief and other measures that will help businesses deal with the slow economy that is resulting from the outbreak.
Oil prices climb for a second day
Brent futures rose by $1.26 (3.4%) and reached $38.48 a barrel (0430 GMT) and WTI rose by $0.91 reaching $35.27 a barrel.
Half of the losses of Monday were recouped by this morning.
ANZ said in a note: “The rebound in crude oil is not expected to last long, with Saudi and Russia boasting about how much they can boost output by as the battle for market share begins,” as on Tuesday, the Saudis said that they will boost oil supplied to a record high in April.
Meanwhile, in the US, crude oil inventories rose in recent weeks while gasoline and distillate stocks went down.
ASX slides to a 13-month low
Investors in Australia are fearing that the country might be falling into a recession and today the S&P/ASX200 fell to a 13-month low.
It had its lowest closing price since the beginning of January last year and closed at 5,725.9 points, dropping 3.9% and therefore pushing the index into a bear market.
Throughout the day, it was the bank stocks that suffered the most, with the Commonwealth Bank down by almost 6.6% and NAB down by almost 6.3%.
Financial Events to watch for today
11:00 GMT - OPEC Monthly Report