Feb 28 2020 0
Last trading day of the week, guys. Take a look at the hottest news on the market today and decide for yourself "What trading strategies should I apply now?" before the market closes.
It keeps falling
Markets and economic forecasts continue to decline due to the desperation of the virus as global stocks fell about 10% from their peak this month and are heading to the worst week since the annual financial crisis. 2008. The sell-off is likely to drag until Asia today as the futures markets in Japan, Hong Kong and Australia all fell after the S&P 500 fell more than 4% yesterday amid news. California is tracking 8,400 people for signs of the virus. Safe-haven properties continue to witness increasing demand. US Treasury yields and Australian government bonds hit record lows.
But that's not all: the world economy may be heading for the worst performance since the financial crisis - Bank of America has cut its global growth forecast for 2020 to 2.8%. However, although US stocks are in the worst decline in years, there is little consolation that prices in the Chinese market are recovering.
In another attempt to prepare for a more widespread outbreak of the virus in the United States, health officials will allow state and local medical laboratories to adjust. A Coronavirus test was originally delayed after several weeks. The change will speed up testing and allow laboratories to start using the hundreds of kits that were submitted earlier this month instead of having to wait for new test versions from federal health agencies. Governments and private companies are also developing new improved tests for use by hospitals and public health laboratories.
The US health agency has also significantly expanded the number of people who will be tested for Coronavirus, reaching both tourists from a number of newly infected countries as well as those with severe respiratory illness who are unaware why. Gavin Newsom said California is now monitoring 8,400 people and signs of exposure to Coronavirus after they arrive in Asia. In China, the emergence of this virus is exposing the omission in the national health care system, years after the SARS pandemic. Currently, the number of deaths worldwide has exceeded 2,800, with more than 82,400 virus infections. With all these cases happening around the world, can we call it a pandemic?
Not much of a choice
An increase of 2,800% in Chinese stock options contracts is showing a desperation for hedging. How is the specification? In China's $7.8 trillion ocean, there are only 4 options contracts, so it's probably not uncommon for one of them (just introduced in December) to witness a special need when the Chinese market is threatened by the Coronavirus on February 3. When the market resumed after a long holiday, traders rushed to sign a contract with the Huatai-Pinebridge CSI 300 fund, which was linked to one of the benchmark equity indexes. of the nation. So a lot of options increased by 2,849% that day.
That not only reflects the growing concern during the Lunar New Year holiday on the onset of a deadly disease on the possibility of growth, but it also reflects the scarcity of protective measures in the market. second largest stock in the world. With more volatile trading in recent weeks than any period after 2015, investors are calling on managers to continue expanding the menu of options.
Australian Prime Minister Scott Morrison said the government is currently considering stimulating the sectors of the economy most severely affected by the outbreak of the Coronavirus. Mr Morrison shared in a TV interview with local media that: "The advice of the Ministry of Finance is that any stimulus should be targeted, moderate and scalable."
In particular, tourism and education were affected by the virus outbreak when the government announced that the ban on people traveling from mainland China would be extended for another week. Restrictions on travel have caused thousands of Chinese students - a major source of income for Australian universities - to be prevented from leaving the country as soon as the school year began. According to a report published by the Tourism Transport Forum, the Australian Financial Review reported, the impact of the virus could cause a loss of $2 billion per month.