Investors Assess the Risks of Further Spread of Coronavirus from China

On Friday, the US dollar weakened significantly against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.52%). Markets are under pressure due to the spread of the Chinese coronavirus. Investors continue to monitor the global economic impact of the virus spread, which overshadows the profitable season.

Chinese markets have opened after the New Year holidays, which were extended by 10 days due to an outbreak of coronavirus. The start of trading was marked by the expected collapse of the indices on average by 8%. This is the biggest drop in Chinese indices since 2015. Chaos is happening on the Chinese exchanges, many stocks are collapsing. During the current trading week, a number of important indicators on economic activity in the Eurozone, the UK and the US will be published. Investors will also assess the US labor market report for January.

The "black gold" prices are declining. Currently, futures for the WTI crude oil are testing the $51.70 mark per barrel.

Market Indicators

On Friday, there were aggressive sales in the US stock market: #SPY (-1.82%), #DIA (-2.12%), #QQQ (-1.59%).

The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 1.53-1.54%.

The Economic News Feed for 03.02.2020:
  • - German manufacturing PMI at 10:55 (GMT+2:00);
  • - Manufacturing PMI in the UK at 11:30 (GMT+2:00);
  • - ISM manufacturing PMI at 17:00 (GMT+2:00).

We also recommend paying attention to the speech by the ECB President.

by JustForex, 2020.02.03

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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