Market Summary: The long and the short of it.
ASIA
Asian markets succumbed to the news that the coronavirus has not gone away overnight. Japanese and Hong Kong shares fell, Nikkei 225 is off -1.79% while the Hang Seng dropped -1.83%. The Shanghai Composite is not trading as the Chinese Lunar New Year holidays have been extended.
Chinese authorities on Thursday said more than 7,700 people have now fallen victim to the virus, with at least 170 dead. World Health Organization officials expressed “great concern” of the virus’ spread outside of China. A U.N. panel is expected to meet today to weigh if the outbreak should be declared a global emergency, the Associated Press reported.
Europe
European markets finished higher on Wednesday with shares in France leading the region. The CAC 40 climbed +0.49% while Germany’s DAX rose by+0.16% and London’s FTSE 100 nudged ahead +0.04%.
Americas
In the U.S. stocks finished unchanged after the Federal Reserve left rates on hold Wednesday afternoon, the S&P 500 fell by -0.09%. The Fed chief Jerome Powell said on Wednesday that the U.S. economy is in “good shape”, announcing that the central bank left a key interest rate that influences borrowing costs unchanged. However, he also said the Fed is closely monitoring the severity of the deadly coronavirus and the potential for the illness to disrupt the global economy.
Mexico’s IPC gained +0.93%, while the Brazils Bovespa finished down by -0.94%
Elsewhere, risk aversion once again found buyers, with U.S. Treasuries catching another feverish bid to push the 30-year long-bond yield to 2.04% while the 10-year note finished at 1.59%.
Commodities
Commodities were mostly hammered, with copper extending its recent losses to sit 11% lower than its January 14th close. We pause and wonder if copper is the canary in the coal mine?
Crude Oil (WTI) fell to $53 a barrel, its lowest since mid-October. Gold was bid up to $1,577 an ounce, Silver to $17.58 an ounce. The fear index (VIX) held steady near 16.5 while Bitcoin finished relatively unchanged at $9312.
“Clowns and elephants are the pegs on which the circus is hung”
–P.T. Barnum
We here at the Impartial Lens took delight in the news that John Bolton was inadvertently exposed by both republicans and democrats…. to be the ridiculous, dangerous clown that he is.