Let's check out the latest updates for today, February 4. As traders, we must pay attention to every change of the world in order to apply the most suitable forex trading strategies. Without further ado, here they are:
The Coronavirus is forcing almost everything to be reconsidered in China, even forcing it to prepare steps to adjust for slower growth. Officials are evaluating whether or not to soften the economic growth target for 2020, while state-owned liquefied gas importers are considering declaring they cannot implement a number of obligations for deliveries - known in force majeure cases.
The authorities in Beijing are hoping the United States will agree to some flexibility in the commitments in their phase one trade deal. Two-thirds of China's economy will remain closed this week as some provinces have extended the Chinese New Year holiday to help stem the spread of the disease that is believed to have claimed more than 360 lives, with The number of confirmed cases is nearly 17,400. Meanwhile, pressure is increasing in Asia to cut interest rates to limit the economic collapse caused by the virus.
Today, the Asian stock market will start to be quite chaotic after US stocks increased slightly as investors continue to consider efforts to stop Coronavirus. Commodity markets are still under pressure, as oil fell about 3% and the dollar appreciated. The futures market shows a rather quiet start in Tokyo and Sydney, while the market in Hong Kong will rise. The S&P 500 closed with a gain as China increased stimulus in an effort to push the US economy and production data above estimates. Treasury bonds fell, although the momentum eased at the end of the session. The yen weakened, while the yuan remained above 7/USD. Elsewhere, copper fell for the 14th day in a row. Oil fell below $50 a barrel after Chinese consumption is expected to fall by 20% amid efforts to control the spread of Coronavirus.
It will be a while before China will pay billions of dollars on U.S. agricultural products as part of a trade deal with Donald Trump. There are many skeptics of China's promised purchase capacity - $50 billion - since the treaty was signed in mid-January. And while the head of Archer - Daniels - Midland, one of the world's top agro-commodity traders, said the Asian nation will live up to its promise, most of their purchases will only arrive in the second half of 2020. Moreover, the Chinese officials are hoping the United States will agree to the flexibility of their commitments because the lethal spread of Coronavirus risks slowing domestic growth, although the United States says it has not received any such requests.
"I think this is a very important issue and China will most likely avoid the huge purchase fever from the trade deal," said Michael McDougall, managing director at Paragon Global Markets in New York. to the present. " That could delay motivation for farmers - a core voting division for President Trump as he prepares to seek re-election later this year.
Tesla shares have surged the most since 2013, extending the rally for a fifth straight day yesterday with a rise of more than $100 per share as good news boosted investor sentiment. The stock rose 21% to $786.14, the highest price ever. Earlier, Panasonic, the battery maker for Tesla, said its business results were profitable in the quarter ended December 31.
Hirokazu Umeda, Panasonic's chief financial officer, told reporters in Tokyo on Monday that Tesla's rapid increase in output helped the company quickly make a profit. Tesla's stock price hike also comes from Argus analyst Bill Selesky, who raised his price target for Tesla to $808 from $556, reflecting the growth in sales of Model cars. The old S and Model X, as well as strong demand for the Model 3. Tesla stock has now increased by 79% in just 2020, and has tripled in value since the third-quarter results were reported in the middle. October.