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Coronavirus death toll surpasses fatalities from SARS epidemic
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Asian indices fell, mixed feelings in Europe.
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US dollar remains strong: 1.0900 support level gets closer
The new week has started with crucial coronavirus updates from China. China’s National Health Commission confirmed almost 41,000 cases including 908 deaths. These figures make coronavirus officially more deadly than SARS. Today a great deal of plants were supposed to reopen and restart production, yet that is not the case as many factories remain shuttered. China’s officials assure that the virus will be defeated as the country will adopt even more decisive measures. Moreover, scientists are expected to provide a drug, which would hopefully decrease the death toll. According to the Chinese ambassador in Warsaw, China has spent roughly $10 bln to fight the virus so far.
Amid coronavirus fear and uncertainty, Asian stock indices fell on Monday: Nikkei closed 0.60% lower, KOSPI was down 0.59% while HSCEI fell by 0.59%. The exception from the rule was SHComp, which was up 0.51%. European stocks tend to fall as well, yet the feelings are more mixed and declines are not significant. On the other hand, investors in America are more optimistic and major indices indicate a modest increase.
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Open account Try demo Download mobile app Download mobile appAs far as the FX market is concerned, the US dollar still remains strong against the euro. Still, its strength may be explained by solid NFP data published last week. As a matter of fact, EMU countries repeatedly release rather disappointing data - today one could find out that Italian Industrial Production declined by 4.3% YoY (est. -0.2%). As a result, 1.0900 resistance level might soon be reached.
Although this week may not be as vibrant as the last one regarding economic events and data, investors should particularly pay attention to UK GDP and manufacturing reports, Germany’s GDP data as well as CPI in the US and Germany. These will certainly have an impact on financial markets. Besides, the earnings season still continues, therefore investors interested in certain companies should pay attention to the earnings calendar.
As EMU countries repeatedly release rather disappointing data, US dollar is getting stronger. The 1.0900 support level may soon be reached. Source: xStation
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