04.03.2020 Daily Analysis to Facebook

Facebook share prices fell to $ 185.89 from $ 196.44, representing a 5.37% fall in facebook’s stock prices in one trading session. This happened after Elizabeth Warren described Facebook’s Libra project as revolving around monopolistic power and corporate responsibility, making bitcoin seem better than the libra currency. Facebook is considering adding digital versions of recognized currencies such as the dollar and the euro to their digital wallet in addition to their Libra digital currency which is set to be launched this autumn to reduce the pressure of regulatory backlash and concerns. Facebook always comes up with solutions to disputes about their operations and they would most likely solve this just like their previous issues. USD/CHF The Fed rate cut was meant to ease fears of economic fallout due to the coronavirus disease but that did not work out well as the dollar made further losses. The dollar-CHF pair was trading at mid-0.9500 at the close of Tuesday’s trading session but made a bounce back early Wednesday morning by 0.05% because of Switzerland’s CPI which measured lower than the forecast. Other factors that increased the value of the U.S dollar included the MBA purchase index and applications. ________________________________ Dow Jones Industrial Average The Dow saw some of its gains from Monday erased on Tuesday after the G-7 meeting and The Fed announcement that it will cut interest rates. The panic among investors was due to the fact that Finance officials from the G-7 countries did not agree to coordinate interest rate cuts and made no commitment to fiscal stimulus to stave off the economic fallout. Meanwhile, the Federal Reserve went ahead and cut the interest rates by 50 bases point which is good because it encourages borrowing. Stocks had soared because investors came to expect the Fed would cut rates. Despite the interest rates being cut, the US President Donald Trump still tweeted; "Australia's Central bank cut interest rates and stated it will most likely further ease in order to make up for China's Coronavirus situation. Other countries are doing the same thing, if not more so. Our Federal Reserve has us paying higher rates than others when we should be paying less. Sad!" the emergency cut also was a signal that the US economy could be in serious trouble because of the virus outbreak. The Dow at one point had lost almost 900 points and by the time of closing was at $25,998.26 (−705.060)(-2.64%)