Stocks slump as coronavirus spreads
US indices had a poor start to the week as the virus that originated in Wuhan spreads globally and the number of deaths increase. Safe haven assets see heavy demand, while oil prices drop. Onshore markets in China remain closed for the week.
US30USD Daily Chart
The US30 index posted the biggest one-day decline since October as fears surrounding the economic impact of the Wuhan virus heighten
The 55-day moving average, which has supported prices since October 10, is at 27,374
US durable goods orders probably rose 0.5% in December, according to the latest survey of economists. That follows November’s dismal 2.1% decline.
DE30EUR Daily Chart
The Germany30 fell the most since October 2 as stocks were shunned in favour of safe haven assets amid escalating concerns about the spread of the coronavirus
The index closed below the 55-day moving average for the first time since October 8, touching the lowest since January 8 in the process
There are no major data releases from either Germany or the Euro-zone today. The only item on the calendar is a speech from ECB’s Lane.
WTICOUSD Daily Chart
West Texas Intermediate (WTI) fell for a sixth straight day yesterday amid rising concerns that the spreading coronavirus would hurt global growth and hence reduce demand for crude oil
That’s the second time this month WTI has fallen six consecutive days which has seen prices fall almost 20% from the January peak
Weekly stockpiles data from the American Petroleum Institute to January 24 are due today. Last week saw an increase of inventories by 1.6 million barrels.
