European Markets Crash on Coronavirus Outbreak in Italy, Risk Aversion Intensifies
Global markets are clearly in deep risk-off mode today. In particular, with the sudden explosion in coronavirus cases in Italy (150 infections and 4 deaths), European stocks are suffering their biggest plunge since 2016. Italian stocks leads the decline, down -4.5%. South Korea is even worse (833 cases and...
Sudden Explosion of Coronavirus Cases in Korea might Urge BOK to Cut Rate this Week
Explosion of coronavirus cases should further delay Korea’s economic recovery, leading Bank of Korea to push forward the rate cut to as soon as this week. Last month, policymakers shifted the tone to neutral from dovish. However, the January meeting was held before the spread of China’s coronavirus to...
Risk Aversion Deepens as China Coronavirus Spreads Quickly to other Countries
Risk aversion deepens in global financial markets today as China's Wuhan coronavirus is clearly spreading to other countries. Gold surges to seven-year high on safe haven flow while Asian stocks are generally pressured. The currency markets are relatively quiet though as major pairs and crosses settle back into Friday's...
CFTC Commitments of Traders – Traders Continued to Bet Lower EUR on Disappointing Economic Data
As suggested in the CFTC Commitments of Traders report in the week ended February 18, NET LENGTH in USD Index gained +4 742 contracts to 24 228. Speculative long positions dropped -1 314 contracts and short positions dropped -6 056 contracts. Concerning European currencies, NET SHORT for EUR futures...
CFTC Commitments of Traders – Traders Bet Crude Oil, Gold and Silver Prices Higher
According to the CFTC Commitments of Traders report for the week ended February 18. NET LENGTH for crude oil futures gained +14 995 contracts to 411 764 for the week. Speculative long positions dropped -5 903 contracts while shorts declined -20 898 contracts. For refined oil products, NET LENGTH...
Safe Haven Flows into Gold and Treasuries on China Coronavirus Contagion
Outbreak of China's Wuhan coronavirus continued to be a big market mover last week. According to China's own numbers, new cases in the country seemed to have slowed even though new daily deaths maintained at around 100 level. What's worrying is that contagion to other countries, in particular Asia,...
European Majors Recover after UK and Eurozone PMIs
European majors recover today following better than expected PMI data from UK and Eurozone. Concerns of China's coronavirus hasn't materialized into business confidence data yet. On the other hand, commodity currencies are generally lower, followed by Dollar. For the week, while New Zealand and Australian Dollars are among the...
Markets Worried as Coronavirus Outbreak Widens, Aussie Decline Continues
Market moods turned sour again today as outbreak of the coronavirus seems to be getting more serious outside China. In particular, South Korea cases surged by 52 to 156. In China, there were 889 new confirmed cases yesterday, with total accumulated cases rose to 75465. China's Science and Technology said...
Dollar Firm after Solid Job and Manufacturing Data, Selling Focus Turns to Sterling
Dollar remains generally firm today as supported by solid job and manufacturing data. Euro's selloff seem to have temporary passed a near term climate and focuses turn to other major currencies. Australian Dollar suffer deep selling after job data, dragging New Zealand Dollar lower. Meanwhile, Yen is closing following...
Uncontrollable Coronavirus Spread Could Force the Fed to Resume Easing
The FOMC minutes for the January meeting revealed that policymakers remained content about the domestic growth outlook. However, they acknowledged the growing uncertainty emerged from the coronavirus outbreak. This could present significant downside risks to global growth. The situation of the epidemic has deteriorated significantly since the last meeting....
Aussie Tumbles as Unemployment Rate Surged, Yen Weak on Coronavirus Contagion
Australian Dollar is in free fall in Asian session today as surge in unemployment rate adds to case of April RBA cut. Sentiments are also generally weak as markets disapprove China's tiny rate cut. Instead, investors are concerned with sign of contagion of Wuhan coronavirus to other Asian countries,...
Sentiments Stabilized on China Stimulus Hope, Yen Falls on Political Pressure
Yen is under broad based selling pressure today as sentiments somewhat improved with expectations of more stimulus from China to counter the impact of Wuhan coronavirus outbreak. Additionally, Japanese Prime Minister Shinzo Abe is under increasing political pressure on handling the spread of the coronavirus in the country. Sterling...
Markets Stabilized as Focus Turns to FOMC Minutes, Dollar Resilient
Yen, Swiss Franc and Dollar weaken mildly today as risk markets stabilized. On the other hand, commodity currencies recover generally. But the movements are so far limited. Investors remain vigilant on the development of China's Wuhan coronavirus outbreak, but there is no breakthrough in either direction yet. FOMC minutes...
Euro Tumbles Again as Economic Sentiments Deteriorates Sharply, Markets Stays Risk-Off
Markets remain in risk-off mode today after Apple's warning that China's Wuhan coronavirus outbreak would hurt sales. Deep deterioration in German economic sentiment also reflect the impact on confidence. Investors will likely remain fragile until there is sign of full operation resumption in China. But that won't happen soon....
Haunted by Domestic Weakness and Coronavirus Uncertainty, Euro’s Weakness is Set to Continue
Currently trading at 1.083 against USD, lowest since April 2017, the single currency has plunged -2.4% in the first half of February. This follows a -1% decline in January. Disappointing economic data, renewed speculations on further rate cut by ECB and intensified global uncertainty as driven by coronavirus outbreak...
RBA Minutes Reveal that Members Consider Cutting Rates Below 0.75%, Warn of Coronavirus Uncertainty
In contrast to February’s RBA meeting statement, which demonstrated a less dovish outlook, the minutes revealed that the members considered lowering the policy rate further. Yet, they decided to keep the powder dry on concerns over “risks associated with very low interest rates”. The central bank was upbeat about...
Risk-off after Apple Warning, Euro Extending Decline ahead of German ZEW
Markets are back in risk off mode in Asia after Apple's warning. While Wuhan coronavirus cases in China might appear to have slowed, investors remain vigilant. More risks lie ahead with German economic sentiment data featured today. For now, commodity currencies are the weakest ones as led by Australian...
Markets Quiet With US on Holiday, Investors Shrug PBoC Stimulus
Markets are generally quite today with US on holiday. PBoC's stimulus measure might have boosted Chinese stocks higher. Reactions from other markets are rather muted. Investors remain generally cautious as this week's February sentiment data will reveal how much China's Wuhan Coronavirus outbreak is hurting confidence. In the currency...
Yen and Nikkei Lower on GDP Contraction, Pessimistic Outlook
Asian markets are mixed as another week starts. Nikkei weakens, together with Yen, as data showed the Japan economy suffered worst contraction in six years. Singapore Strait Times is also mildly lower after the government downgrade this year's growth forecast. Yet, China and Hong Kong stocks are trading mildly...
Euro Collapsed on Coronavirus Spillover Fears, Next Two Weeks Crucial
While China's Wuhan coronavirus outbreak remained a major focus last week and triggered much volatility. But overall, stocks investors seemed not too bothered, with US indices continuing record runs. Other major markets are mixed only FTSE and Nikkei ended the week lower only. Gold closed higher but is well...