There was carnage throughout world markets as stocks and commodities were smashed overnight.

Currencies were not immune to the events on world markets as the USD stepped up its role as a safe-haven. The EUR/USD opened the day at $1.14504 and remained steady early, before climbing to a high of $1.14719 mid-session. The back half of the day saw the euro tumble to a low of $1.13573 and it is not far off that low, currently trading at $1.13678. The pound followed a similar path to the euro after opening the day at $1.28437. The GBP traded in a rather tight range early, peaking at $1.28824 mid-session. Like the euro, the pound began its fall not long after reaching that high, where it bottomed-out at $1.27754 very late in trading. It is currently trading at $1.27795.

There was carnage among stocks worldwide, with the Dow copping the brunt of the heat. The index opened at 25,043.72 and bumped up to a high of 25,049.20 shortly after opening. The Dow weakened moderately in early trading, but it was mid-to-late session trading where most of the damage was done. The Dow was on its way to shedding over 700 points as it sunk to a low of 24,367.20. It came off those lows and closed at 24,433.30. The Dax fared better than the Dow, but still closed deeply in negative territory. The German index opened the day at 11,189.04 and lifted to a high of 11,199.30 during that opening hour. The Dax then fell to lows of 11,006.60 mid-session before climbing off the canvas, closing at 11,063.60.

Oil was annihilated overnight as supply build up continues unabated. A strengthening USD puts pressure on oil prices as well as Oil is quoted in USD. It opened the day 57.335 and peaked at 57,397 shortly after. It remained steady during the first half of the day before collapsing in late trading. Oil crashed over 6.5% as it hit lows of $52.696, prices not seen since October 2017. It has bounced back a bit and is currently trading at $53.456.

The day ahead will definitely be an interesting one, as markets try to recover from the overnight bloodbath. Data set for release today includes:

Canada – Wholesale Sales

Japan – All Industries Activity

UK – Public Sector Net Borrowing

NZ – Credit Card Spending, Visitor Arrivals

US – Durable & Core Durable Goods Orders, Unemployment Claims, Revised UoM Consumer Sentiment & Inflation Expectations, CB Leading Index, Existing Home Sales, Crude Oil Inventories, Natural Gas Storage

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