Feb 24 2020 0
The current situation of the Coronavirus is getting more and more complicated. This surely affects the world's economy greatly. Let's check out how things are going and figure out the most suitable forex trading strategy.
The fear of virus rose
The Coronavirus continues to destroy people and the global economy over the weekend. Hong Kong chief financial officer warned that they were threatened by a virus as strong as a tsunami because it devastated businesses that had been attacked after months of protests against the government. South Korea has raised its country's infectious disease warning to its highest level after infectious cases increased 20 times in just 5 days. The UK said four passengers from Diamond Princess cruise ship in Japan on Saturday had tested positive for the virus. Three passengers on board died, while the other one tested positive at home, although the previous result was negative during the quarantine process on board.
Italy canceled public events in the north of the country, including the Venice Carnival after the Coronavirus infection increased to 140 and a travel ban affected about 50,000 people in southeastern Milan. has been executed. Inside China, the top leader has committed to taking more steps in fiscal and monetary policy to help restore growth and push factories to reopen.
The markets are back
The cautiousness that has clung to the financial markets in recent days has shown no sign of letting go as the trade is taking place this week, with fears that the Corona virus will hinder the copper's growth prospects. Australian and New Zealand dollars. The yen has appreciated. The futures market showed a peaceful start across Asia Pacific after the S&P 500 fell 1.1% on Friday. Over the weekend, central bank and finance executives from the world's largest economies said they felt the risks to the global economy persisted when the supply chain was disrupted by a virus. lethal. Japan will be closed for a holiday and Treasury Bonds will not be traded until the London session opens. Companies announcing earnings this week are Standard Chartered, Beyond Meat, Rolls-Royce and Dell. Hong Kong's GDP will be announced on Wednesday and the Korean exchange rate decision will come on Thursday.
A warning from G-20
Central bank and finance executives from the world's largest economies say they see the risks to global growth persist as Corona virus adds to the uncertainty and disrupts the chain. supply. While the delegates at the Group 20 meeting in Riyadh, Saudi Arabia spent most of their time talking about the response to an epidemic originating in China, their final statement only mentioned the outbreak. Single illnesses, said that they will strengthen into risk monitoring. And although they said that the participants agreed on a "menu of policy options" for dealing with emergencies, the statement ultimately included only a few details of the coordinated response. Saudi Finance Minister Mohammad Al Jadaan said G-20 countries had agreed to intervene in necessary policies related to these risks.
No safety network
Hong Kong companies do not have a safety net in the battle to survive because the city does not have procedures to protect bankrupt companies. The city's chief financial officer has warned that Hong Kong is threatened by a "tsunami-like" battle because the new Coronavirus has devastated businesses struggling for months of anti-main protests. covered. Unlike in the United States, Australia and rival Singapore, businesses in Hong Kong cannot reclaim any bailout procedures when facing difficulties. According to Johnson Kong, President of the Hong Kong Institute of Certified Public Accountants: "The lack of a suitable legal framework to seek protection from the brink of bankruptcy, which is a matter that has been considered in a quarter of a position. This means companies are forced to carry out liquidation activities. "