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5.03 - global markets fear the pandemic

22.02.2019

 

Traders are still thinking about volatility. How are we supposed not to think about It when the markets are all it after Fed rates cuts? Surprisingly, volatility is not really touching USD itself, but shaking the rest of the markets instead. That was not an expected move, but here we are. The scary thing is that neither we nor the Fed officials themselves know that the cuts are going to be effective in the long run, so this whole thing might be for nothing.

 

In the meantime, concerns around the world are growing. With China still being largely shut down because of the coronavirus, we are starting t fell the effects in the most unlikely of places. A lot of world manufacturers are afraid that they are going to experience shortage. For example, Coca-Cola company is afraid that they are not going to be able to meet output quotas because the sweetener for their drinks comes from China.

 

So, what are we to learn from this? That all of the companies, even if it is a big conglomerates, which are tied to parts or ingredients from China will experience tough times ahead if the virus continues its pace.Of course, for now economy seems to be quite solid, even with all the shakes, but we might be in the very beginning of a global pandemic, let’s not forget that.

 

Fears are driving traders and investors further in precious metals. It has been a long time since we saw a rally like that in the segment. We might as well enjoy it while it lasts.

 

Here are the main numbers for the day:

 

Topix grew 0.7 percent.

Kospi added 0.9 percent.

Shanghai Composite grew 1.9 percent.

Hang Seng from Hong Kong increased 1.7.

S&P 500 futures dropped 0.6 percent.

Euro dropped lower by 0.2 percent - $1.1136.

Pound recovered 0.45 percent - $1.2874.

Yen nudged a little higher – 107.33 per dollar.

Canadian dollar dropped 0.3 - $1.3395.

Tesla increased 0.5 percent - $749.5.

Apple advanced 4.6 percent - $302.74.

Facebook increased 3.2 percent – $191.76.

Amazon added 3.5 percent – $1975.83 per share.

Google surged 3.3 percent - $1381.6.

WTI grew 0.5 percent - $47.39 per barrel.

Brent recovered 0.6 percent - $51.88 per barrel.

Gold increased 0.2 percent - $1639.45 per ounce.

Silver grew 0.1 percent - $17.2 per ounce.

Platinum increased 0.4 percent – $874.97.

Palladium decreased 1.6 percent - $2531.15 per ounce.