|Day's Range||13,510.79 - 13,604.85|
|52 Week Range||10,863.56 - 13,640.06|
Wuhan in central China is the size of London. Falls in share prices and the yuan show markets are pricing slower growth and a monetary policy response. The SARS crisis almost halved Asian air passenger demand, inflicting losses on airlines and the hospitality industry.
On Thursday, ECB President Christine Lagarde told a news conference that risks to growth in the Euro Zone remained tilted to the downside.
There’s plenty for the markets to consider in the day ahead and the ECB and Eurozone consumer confidence figures will be a part of it…
(Bloomberg) -- U.S. stocks edged higher in volatile trading as investors considered the potential for a virus that emerged in China to eventually dent economic growth. Oil tumbled on concern the market is oversupplied.The S&P 500 Index ended the day up less than 0.1%, lifted by gains in technology shares and positive earnings reports but held back by concern that the deadly respiratory illness could spread, even as China moved to contain the outbreak. IBM rose the most in four months after revenue beat estimates. Tesla Inc.’s market value soared past $100 billion.With stocks trading near records, investors are on alert for any developments that could derail the momentum. They have taken a cautious stance amid concern the coronavirus that has already killed 17 people could turn into a global pandemic.“The fear is that it could hurt growth, that this could continue to have an impact on global markets that are already reeling from the impacts of trade,” said Matt Forester, chief investment officer at BNY Mellon’s Lockwood Advisors.Elsewhere, the Stoxx Europe 600 Index dipped as Italian banks slumped amid a fresh bout of political turmoil.West Texas oil fell below $58 a barrel as ample global supplies offset the loss of exports from Libya. The pound strengthened after Prime Minister Boris Johnson’s Brexit deal cleared its final hurdles in Parliament.Here are some events to watch out for this week:Companies including Texas Instruments Inc., Intel Corp. and Procter & Gamble Co. will post results.Policy decisions are due from central banks in Indonesia and the euro region.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index rose less than 0.1% at the close of trade in New York.The Stoxx Europe 600 Index fell 0.1%.The MSCI Asia Pacific Index added 0.6%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The British pound jumped 0.6% to $1.3134.The euro rose 0.1% to $1.109.The Japanese yen was little changed at 109.87 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 1.77%.Germany’s 10-year yield dipped one basis point to -0.26%.Britain’s 10-year yield was little changed at 0.63%.CommoditiesWest Texas Intermediate crude dropped 2.9% to $56.67 a barrel.Gold was little changed at $1,558.55 an ounce.\--With assistance from Christopher Anstey, Andrew Janes, Adam Haigh, Todd White, Robert Brand, Sheela Tobben, Vildana Hajric and Sarah Ponczek.To contact the reporter on this story: Claire Ballentine in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Potter at email@example.com, ;Jeremy Herron at firstname.lastname@example.org, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Global markets rebound after virus-related fears subside. Risk is still present so traders should be cautious with equity markets trading at all-time highs.
(Bloomberg) -- Investors celebrating Germany’s DAX Index rising to an all-time high may want to have a look at the history books.In the last 20 years, each time the benchmark has set a record, it’s been followed by a drop in the months and years after. From the peaks of 2000, 2007, 2015 and 2018 the gauge fell on average 45% to its trough, with the steepest being a 73% decline following the bursting of the new economy bubble at the beginning of the century.“Yes, the market is ready for a correction,” said Daniel Kerbach, chief investment officer at Merck Finck Privatbankiers AG. “We had a long and steep run, volatility is extremely low and valuations are stretched,” he says.Predicting a stark decline is always difficult, especially if it is triggered by a crisis or black swan event, Kerbach says.Still a correction with a magnitude between 5% and 15% can be considered normal and is quite possible, according to DWS Investment GmbH portfolio manager Christoph Ohme, who helps manage its 5.6 billion-euro ($6.2 billion) Germany fund.“We are currently lacking a wider cyclical recovery, that makes a correction quite possible,” Ohme says.To be sure, this is the first time the DAX has reached a record while 10-year bund yields are negative. This means German equities are still very attractive relative to the bond market, and could limit any downside for the benchmark for now as asset allocations are scrambling to get returns.“In the long run, the environment for stocks remains positive as yields are low and the hard political risk has abated,” Ohme says.To contact the reporter on this story: Jan-Patrick Barnert in Frankfurt at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Paul Jarvis, Celeste PerriFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
China's swift reaction to the coronavirus outbreak, as well as a series of stronger-than-expected U.S. earnings last night, has Wall Street futures, as well as global stocks, on the rebound Wednesday.
It could be a choppy day ahead as the markets monitor the news wires for more details on the coronavirus and chatter from Davos.
The Futures point to a bearish start, with the IMF growth outlook, Davos and the latest news on the Coronavirus likely to be testing the bulls.
While I spend many hours a day scouring through Forex charts, the charts related to these two markets have caught my eye.
With economic data on the lighter side and the U.S markets closed, the momentum looks to provide support going into the European open.