Feb 26 2020 0
We can see that there are serious comeback after gloomy days caused by the virus. Check out the latest updates on the world events and apply the right forex trading strategies.
Hong Kong is back
The Hong Kong stock exchange is changing from a difficult year to a boom in trading. After a bumpy 2019, fluctuations caused by viruses are currently driving volume to start the new year. It is estimated that the exchange activity will help increase 2% of net income for 2019, supported by IPO activities when Hong Kong maintains its position as the largest IPO market in the world. That allowed it to overcome a 19% drop in transactions - typically its main source of revenue - when the city was rocked by anti-government protests. In early 2020, the situation has changed. Trading activity has exploded as investors are hastily adjusting their portfolios to protect themselves against the impact of the widespread Coronavirus as the IPO activity has stopped.
Just in case
Top US health officials have begun to describe a range of measures that the government can take if eventually the outbreak of the Corona virus spread in the United States. They outlined emergency plans that could lead to significant disruptions to the daily lives of certain parts of the population, including school closures, cancellation of sporting events, concerts. and business meetings. Similar measures have been taken by other countries, which are facing an outbreak when the virus has started to attack a significant number of people outside China.
"Although the United States has only witnessed a few cases and hopes to limit the spread, health officials," said Nancy Messonnier, director of the National Center for Immunology and Respiratory Diseases. "It is not a matter of whether this will happen or not, but a question of exactly when this will happen." These comments defeated President Donald Trump's optimistic comments yesterday that the virus was only a small threat to the United States.
Big waves in the market
Asian traders are bracing themselves for more aggressive market moves today after growing fears of the spread of the Coronavirus caused stock and bond yields to fall. Silver the United States slipped. 10-year US Treasury yields fell to a record low of 1.3055% as investors sought refuge from the impact of the virus on growth prospects. The S&P 500 has dropped 3%, bringing its decline to 7.6% in the past 4 days. The futures market fell in Japan, Hong Kong and Australia. Elsewhere, the measure of volatility spiked - Cboe's first gauge rose 30% since 2018. Crude oil fell back after a nearly 4% slump on Monday.
Global trade has experienced a year-round decline due to the 2019 financial crisis as world growth weakened and production declined. Updated data from CPB World Trade Monitor shows that volume dropped by 0.4% last year. Although the decline was not too large, it was the first time since 2009 and followed a growth of more than 3% in 2018. This reflected the protective stance of President Donald Trump and the U.S. trade war with China, as well as the downturn in German industry. While there is hope for a better 2020 as business and manufacturing surveys begin to slowly improve, the virus outbreak has forced most of China to close factories and is now spreading internationally. What a pity!
President Donald Trump made a "remarkable progress" in a trade deal with India as he sought to strengthen ties with a country that proved to be the key to US efforts to reduce Chinese influence in Asia. Officials have tried to implement a modest trade deal with India: selling U.S. agricultural products and medical equipment in return for restoring the preferential export status that Trump once stripped of from India last year.