Icon_contact
Contact

Stocks Under Pressure as Coronavirus Worries Return

jeffriess
February 13, 2020
by Joseph Jeffriess, Market Analyst

Stock indexes fall from highs in today’s session.

Sadly the death toll and infection rate has jumped in mainland China, with the death toll now passing 1300 hundred people.

Markets have been higher this week but have seen strong selling so far today after new figures emerged from China showing the pandemic continues to grow.

Selling got going late in the Asian session with a strong shift from risk back to safe-havens, the JPY has seen solid demand to the majors. The USDJPY falling 0.28%

Stocks have been the other asset class losing ground, CFD indexes in Asia and Europe are trading deep in the red tonight.

JPN225 -1.31% GER30 -0.96%

Markets continue to look at the long-term effect of how this pandemic is going to impact not only the worlds second-largest economy but the world economy. Trade shows have been cancelled and the drop-in tourist investment is already being felt in countries worldwide. Reduced industry in China will also have an impact on manufacturers in multiple industries.

U.S futures have also moved into the red on Thursday, the US30 down 0.79% the SPX 0.79% lower.

Beside pandemic worries, earnings is another factor for U.S. stocks tonight. with Airbus, Kraft Heinz, Alibaba, Credit Suisse, Barclays, Nestle and PepsiCo all releasing earnings before the bell. Companies reporting after the bell include Nvidia, Expedia and Datadog. – CNBC

Federal Reserve speeches from Dallas Fed President Robert Kaplan and New York Fed President John Williams on the economic outlook and monetary policy could also be of importance to traders.

Chart below show’s the 1 hour GER30 tumbling after hitting new records.

Good trading from Eightcap.
All times are AEDT.