Daily summary: Global stock markets keep falling as markets remain on edge

• Global financial markets remain on edge

• Equities falling around the world

• Safe havens plummeting following yesterday’s gains

Following yesterday’s severe declines, coronavirus turmoil has still a major impact on global financial markets. As of Tuesday the virus infected more than 80 thousand people with at least 2,700 deaths worldwide. A crucial battle seems to be happening in Italy now, where the number of cases skyrocketed in the past few days. According to Italian media there have been more than 280 cases of coronavirus in the country. The outlook does not seem promising for the Middle East as well - new cases in Iran, Bahrain and Oman have been discovered. Eleven countries have already closed their borders with Iran where the situation gets severe too. 

After Asian session closed mostly in the red (Nikkei down a staggering 3.34%), the negative impact of coronavirus fears yet again dominated the European equities. Every major index closed roughly 2% lower. As far as American stocks are concerned, at first they were set to open higher. However, the trend has changed and major U.S. indices are now trading lower. 

In terms of economic data, investors got to know the German GDP today. Germany’s economy showed no growth Q4 2019 (0.0% QoQ) - the reading was thereby in-line with estimates. As a result, the economy rose 0.3% YoY (est. 0.3%). Moreover, important economic updates appeared in the U.S. today. The latest CB Consumer Confidence index increased to 130.7 in February which is the best level in six months. Although the reading was below expectations (est. 132.00), it still may be regarded as a good sign following a dramatic PMI figures published last week. The EUR/USD is now trading higher (+0.23%) following a CB Consumer Confidence index release. 

Even though gold and silver prices surged yesterday, their prices are plummeting today. Gold spot price is down roughly 0.67% and silver spot price is falling as much as 2.15%. One may also notice a significant drop in oil prices - both WTI and Brent tumble more than 1%. 

Tomorrow one should certainly pay attention to the U.S. new home sales figures. Apart from that, investors might also be interested in ECB President Lagarde's speech (1:30 pm GMT).

ITA40 dropped today breaking below crucial 23 300 support level. Further declines are highly possible as the next key support lies at 22 264 points. Source: xStation5