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3.02 - Chinese markets tumble after a week of celebrations



As the new week and new month begins, everything looks very different. Assets and instruments are changing their directions and we have to be very careful not to be the victim of these changes. But, unfortunately, if you are a trader of Asian stocks and indices there is a pretty good chance that you have felt a very powerful shove as today Shanghai stock market has lost $370 billion with virus fears plaguing the markets.


Chinese and Asian commutes fell pretty heavily at the first trading session after Lunar New Year celebration that lasted a whole last week. For the last several days we were not seeing any movements from any of Chinese numbers and we might have gotten used to it. But now, look at Shanghai Composite. It alone has dropped so significantly, that there is not doubts left – Chinese markets are now bleeding because of the virus. Oil is also feeling the impact of the disease with Chinese demand lowering and prices for the cruse tumbling.


But lucky for us Chinese markets are not the only ones in the world. We can also trade at European and American markets where the situation looks somewhat better, even though none of them are facing better times than Asia.


For example, Europe is stepping into its first business week without UK being a part of it. And it seems that for now, as we have only entered a transition period for both of the countries both euro and pound are feeling more or less fine, even though both of them are looking lower today than they did on Friday.


American stock market is mixed with TSLA and AMZN growing and other major names slipping lower. We can’t help but wait for a recovery, but that might not come for a long time for AAPL stock, for example. Apple were forced to close down the entire production and distribution line in China due to coronavirus and it undoubtedly is going to lead to profit shortage at least in this quarter, although we can’t rule out the influence for the entire year as well.


Here are the numbers for the beginning of the week:


Topix decreased 0.5 percent.

Kospi dropped 0.2 percent.

Shanghai Composite declined 8 percent.

Hang Seng from Hong Kong added 0.2 percent

S&P 500 grew 0.6 percent.

Euro decreased 0.1 percent - $1.1085.

Pound decreased 0.1 percent - $1.3163.

Yen was barely moved – 108.49 per dollar.

Canadian dollar was barely changed - $1.3239.

Tesla jumped by 1.5 percent - $650.57.

Apple lost 4.4 percent - $309.51.

Facebook dropped 3.6 percent – $201.91.

Amazon added 7.4 percent - $2008.72 per share.

Google decreased 1.5 percent - $1432.78.

WTI declined 0.1 percent - $51.48 per barrel.

Brent dropped 0.7 percent - $56.24 per barrel.

Gold dropped 0.6 percent - $1580.56 per ounce.

Silver lost 0.6 percent - $17.79 per ounce.

Platinum nudged 0.3 percent higher– $960.56.

Palladium advanced a bit - $2284 per ounce.