Coronavirus epidemic scare weighs on global markets

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Dollar strengthening intact
US stock market retreat accelerated on Monday as global community pondered about possible impact of coronavirus infection in China with issues like true effectiveness of quarantines and infectiousness degree of the coronavirus adding to sense of uncertainty. The S&P 500 lost 1.6% to 3243.63. Dow Jones industrial fell 1.6% to 28535.8. The Nasdaq dropped 1.9% to 9088.04. The dollar strengthening slowed ahead of Fed’s two day meeting starting today as sales of newly constructed homes in the US unexpectedly dropped 0.4% on month in December: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, added 0.1% to 97.93 and is lower currently. Fourth quarter earnings season continues with Apple, Visa, Pfizer and AMD slated to report results today. Futures on stock indexes point to higher openings today.

DAX 30 led European indexes retreat
European stocks pulled back on Monday as coronavirus outbreak scare undermined investors’ confidence. The slide of EUR/USD and GBP/USD continued yesterday with both pairs lower currently. The Stoxx Europe 600 index lost 2.3% led by basic resources shares. The DAX 30 fell 2.7% to 13204.77 as Ifo institute reported German business sentiment deteriorated in January. France’s CAC 40 lost 2.68% while UK’s FTSE 100 slumped 2.3% to 7412.05.

Australia’s All Ordinaries Index leads Asian indexes retreat
Asian stock indices are in free fall today with markets in Hong Kong and mainland China closed for Lunar New Year holidays. Nikkei retreated 0.6% to 23215.71 despite accelerated yen slide against the dollar. Australia’s All Ordinaries Index lost 1.4% after reopening despite continued Australian dollar slide against the greenback.
AU200 dipping to MA(50) 1/28/2020 Market Overview IFC Markets chart

Saudi Aramco slips while Brent recovers
Brent futures prices are recovering today. Prices ended sharply lower yesterday: March Brent crude closed 2.3% lower at $59.32 a barrel on Monday. Saudi Aramco ‘s shares continue trading on the country’s Tadawul exchange. Shares are currently down 0.3% at 34.15 riyals.

Gold retraces lower after spike in heaven demand
Gold prices are edging lower today. February gold gained 0.4% ending at more than six-year high 1559.96 an ounce on Monday.