5 Key Developments You Need To Know In The Markets On Tuesday

5 Key Developments You Need To Know In The Markets On Tuesday

While the G7 will hold a conference call on coronavirus, the global recovery in risk assets continues without complete persuasion. Oil suffered big increases as OPEC+ ministers rallied in Vienna to discuss additional production cuts – and Today, Super Tuesday in the Democratic Party presidential election race. Tuesday, March 3, here's what you need to know on financial markets: 1.G7 Talks About The Virus World markets are holding their breath to see what the G7, which has done its best in recent years to become unconcerned with its own divisions, can do in the way of coordinated economic policy support in the face of the spreading coronavirus. Online newspaper reports said finance ministers and central bank executives would hold a conference call at 15.00. The Fed, Bank of Japan, ECB and Bank of England pledged they would take “appropriate” action to support the economy and keep financial markets stable. No concrete or coordinated measures were mentioned in the communique that emerged from the talks, according to Reuters. However, the Reserve Bank of Australia cut key interest rates by 0.5% to a new record high and cut Malaysian precedent by 25 points to 2.50%. 2. The global recovery seen in Risk assets continues Despite growing concerns that expansionary monetary policy will be of limited use in the fight against the virus -- which is the main reason for the recovery -- U.S. markets recovered sharply on Monday following the recovery in Asian and European markets. China's main stock markets rose 0.5% to 0.9%, while European stock markets also rose; the Stoxx 600 rose over 2%. With both monetary stimulus in commodity markets and hopes of production cuts of 1 million barrels per day from OPEC and its allies, U.S. crude futures rose around 4% to $ 48.51, while Brent rose 3.3% to $ 53.63. Friday Tuesday Thursday and the ministers are flying to Vienna for the meeting. 3. US stock markets to open higher The recovery in US stock markets will last at the opening without a new shock on the coronavirus front. The Dow 30 rose 183 points while the S&P 500 gained 0.5% and the Nasdaq 100 0.8%. Dow futures are 9.7% below the peak it saw before the outbreak. However, the credit margin continued to be under pressure, revealing that there was still doubt about the sustainability of the recovery. The virus is spreading across the US, with two cases reported for the first time in the state of Georgia and the overall number of cases reaching 105. The death toll in the US remained at 6, with 5 of them in the same home care in Seattle. The sentiment is improving with growing signs that economic activity in China is returning to normal levels. Hon Hai Precision, which combines the iPhone for Apple (NASDAQ: AAPL), said it expects “normal” operating conditions at its Chinese factories to restart by the end of March. 4. Mester to join Evans interest chat Tuesday's data calendar is relatively calm; the speech by Fed officials Loretta Mester and Charles Evans may draw more attention from vehicle sales or the Supply Management Institute's New York Business Conditions Index figures. Likewise, the American Petroleum Institute's weekly update on U.S. oil stocks could be overshadowed by developments in Vienna ahead of the OPEC+ meeting. The Eurozone consumer price index was up 1.2% in February, with the core index rising by surprise to the same rate. The eurozone unemployment rate remained at 7.4%, a 10-year low. Meanwhile, UK construction PMI data reached 52.6 points, a 13-month high. This was a development lost amid fanfare about the Coronavirus outbreak. 5. Democrats ' Super Tuesday The Democratic Party's presidential election race has reached a critical stage – with voters in 14 states – including key states like California and Texas – going to the polls on Super Tuesday. Four candidates remained after Minnesota Sen. Amy Klobuchar and South Bend Mayor Pete Buttigieg withdrew and former Vice President Joe Biden was confirmed. Biden is generally picking up voters from those two, and their rejection of Mike Bloomberg looks likely to further boost Biden's chances of becoming a standard-bearer for moderate Democrats. The other big question of the day – if any, of course – is how much Sen. Elizabeth Warren, Vermont Sen. Bernie Sanders, can stand out among the progressive wing of the party. Source: İnvesting.com