Have stock markets picked up the virus?

By 25/02/2020News
Morning Stock News

Gold   1647,85
(-0,68%)

EURUSD   1,0852
( +0%)

DJIA   28194,50
(+0,82%)

OIL.WTI  51,69
(+0,72%)

DAX   12973,16
(+ 0,01%)

It’s very likely that it is. Monday was the worst day since the beginning of the year for the American stock market. Investors are beginning to panic as coronavirus spreads so much around the world. Just like “infected”, the S&P500 and Dow Jones Industrial indices have been losing more than 3% almost since the opening of the trading session. Uncertainty due to the decline in production in China, a sharp rise in the price of gold is forcing investors to flee risk instruments even more actively. We will probably see an even bigger correction on the platforms, as the trading week has just started.


Chart of the day DOW Jones Industrial


Indices

Monday was the worst day for European markets in three years. Indices are falling rapidly on new coronavirus distribution data in Europe, in particular in Italy. Fear of a pandemic may have a strong impact on the tourism business, as well as on sales of luxury goods.


Euro, Pound, Yen

But on the currency market today, there is a relative lull. Due to the lack of important economic news, major currencies are traded in a small range. On Monday, the Euro is strengthening by 0.14% to 1.0864, the pound is almost

standing still and trades at 1.2923 against the U.S. dollar, more surprising is the Japanese Yen, which has always been the currency of refuge. In recent days, it starts trading like a real risky asset. It rose to 112 at the end of last week and rebounded to 110 on Monday. The weakness of the American dollar in recent days is letting us know. The trend of strengthening the Japanese Yen will continue.


Gold

Gold is back on the horse. Investors of all suits have carried their money to buy gold and to hedge possible risks associated with the virus. Gold is once again hitting seven-year highs and is targeting $1700 per ounce. This week, traders will try to get information from various statistical reports, which will be published both in the U.S. and Europe. Weak reporting and slowdown in the economy will only spur further gold purchases.


Bitcoin

The cryptofans had been waiting a long time for bitcoin for $10000. And so the psychological level was taken, but not for long. Already very quickly bitcoins were brought down to the level of 9600 in a short time. Cryptoinvestors are perplexed by the current situation in other world markets, so there are no strong fluctuations in cryptos. This may be another calm before the storm and as soon as possible, the bitcoin will go to new levels above $10000.


What’s waiting for us today?

08.00 GDP in Germany.

15.45 Speech by FOMC member Kaplan

16.00 US Consumer Confidence Index.


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