Mar 06 2020 0
We should get a hold of the latest news on the world nowadays to know exactly what forex trading strategies to apply.
Asian stocks seem to suffer heavy losses after US stocks fell along with the yield of Silver Bonds due to new concerns about the impact of Coronavirus. Gold rose with the yen and Swiss franc. Equity futures market fell more than 2% in Japan and Australia. The S&P 500 index has dropped more than 3% as investors' confidence has been shaken as virus infections continue to rise across the United States despite efforts to contain the outbreak and its impact. Treasury Bond yields have dropped to 0.90% and Australian government bonds are likely to follow those moves today, setting new all-time lows. However, some people saw the possibility of a sell-off. Action from central banks and the government will help counteract the economic impact from the virus, according to JPMorgan Chase & Co. strategists, who previously advised clients to reduce risk. But the experts should still hold stocks.
Will there be a vaccine?
As the Corona epidemic spread globally, medical professionals who were treating and studying patients with Covid-19 virus in Wuhan shared their insights yesterday with reporters in Beijing. . And the question is when will the vaccine be available? And the sad answer: Finding a new drug for the virus is unlikely to succeed. Meanwhile, the United Kingdom and Switzerland reported the first deaths and the head of the World Health Organization warned that they would name the countries that did not do their best in the fight. with an outbreak. In the midst of the tragedy that happened, Kim Jong Un sent to South Korean President Moon Jae-in a condolence letter about the outbreak of Coronavirus.
Not a clue
What was the impact on the stock market this week? Coronavirus? Pessimism about Fed policy? Optimism about the government's response? Federal Reserve Beige Book Report? Or Joe Biden? Everything depends on how the virus outbreak happens, and no one knows that. Kathryn Kaminski of AlphaSimplex Group said: "When you have a day that makes 4.5% of profits and a day of 2% losses in the market, what does it mean? It is simply that we don't know. what is really happening. " The Cboe volatility index, or VIX, remained above 30 for 6 consecutive sessions, the longest chain since 2011. Monday just rose, Tuesday fell again and Wednesday rebounded. The S&P index also fluctuates up and down in 9 sessions. The fear measure will probably increase the most in emerging markets.
Global banks are stepping up their response to the Coronavirus by changing operations as the disease spreads in New York, London and other financial centers. JPMorgan and Danske Bank in Copenhagen are redeploying employees in their sales and transaction departments, specifically for employees working at contingency locations to reduce disruptions if employees come in contact with the virus. Wells Fargo has restricted unnecessary travel in the United States, Goldman Sachs is planning to divide staff between rotating teams and the Royal Bank of Canada is scheduled to host a "virtual" conference. (no face-to-face meetings) next week. These are efforts that go far beyond previous steps - banks have tested and adjusted their plans to maintain important activities throughout a pandemic, they have actually made efforts.
The global market is in chaos and the central banks are quickly controlling panic. However, in China - the country most affected by the outbreak of the virus, this is a boom time for traders. A gauge for stocks in Shanghai and Shenzhen rose 14% in just over a month and yesterday, the gauge closed at its highest level in 2 years. A 5G-focused ETF has accumulated $2 billion in a few days as investors scrambled to pursue the rise of technology stocks. Desiring to maximize profits, they used stock leverage and daily turnover surpassed 1 trillion yuan ($142 billion), both leverage and revenue reached the highest level in four. year. Government bonds also surged, with 10-year yields reaching their lowest level since 2002. That's a drastic change just a month ago - when the virus stagnated factories across the country, isolating the entire city and attacking the stock market with the most brutal sell-off of the year.