Global stocks lose ground, weakening Canadian dollar retests key supports

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Global stocks lose ground, weakening Canadian dollar retests key supports

On Wednesday, the 6th of March 2019, a basket of global stocks had extended their losses for a third straight session and failed to generate momentum from an upsurge in Chinese equities, largely catalyzed by an introduction of new fiscal stimulus.

Besides, a weakening Canadian dollar had been testing its critical support level at 1.3450 after Bank of Canada had turned tail. All three major US indexes ended the day deep in the reds, while most of the European shares had stayed dithered for the most part of the day.

Asian shares fell except Mainland Shanghai and Chinese blue chips. The South Korean KOSPI had yet to see a day in the affirmative zone after Trump-Kim summit had cut short. The Pan European STOXX 600 index lost 0.04 percent in the intra-day trading after remaining flatlined most of the day.

The MSCI’s gauge of global indexes that tracks stock exchanges of 47 countries had shredded off 0.38 percent of its earlier gains. Meanwhile, the American dollar holds forth and appears to be robust ahead of a stockpile of important US data on Thursday (March 7th).

The dollar seems robust closer to its critical support level at 96.50, however, in the intra-day trading that showed little changes, the American Dollar index fell by 0.01 percent, while the euro was up by 0.04 percent to $1.1311.

After another dovish turn by Bank of Canada, the Canadian Dollar seemed to be cornered and testing a crucial support level at 1.3450. However, in intra-day trading, the USD/CAD pair gained more than 0.64 percent to $1.3446.

Addressing a global market with very little changes, a senior portfolio manager at US Bank Wealth Management in New York, Eric Wiegand said, “We’re just kind of treading water, waiting for confirmation one way or the other”.