CDC warning sends shivers across European markets
Fiona Cincotta February 26, 2020 5:17 AM
European stocks are being sold off heavily after Wall Street had a historically bad day triggered by the warning from the US Centre for Disease Control that the US is at risk of the coronavirus spread.
European stocks are being sold off heavily after Wall Street had a historically bad day triggered by the warning from the US Centre for Disease Control that the US is at risk of the coronavirus spread. Investors were frantically trying to access how high the toll of a US spread would be, including company closures, supply disruptions and a hit to consumer confidence, but for the moment there is no reliable model to base it on, particularly as China approached containing the virus in a different fashion than other countries.
In Europe the virus is beginning to get a grip with 34 new cases in Italy registered in the last 24 hours and the first cases reported in Spain and Croatia. And yet, as the virus mushrooms across Europe, for China the worst may be close to over. France-listed luxury goods maker Hermes has been one of the international blue chips to say that its operations in the country are returning to normal and that it has reopened all but four of its 43 shops in China, Hong Kong and Macau.
On the FTSE the worst hit were travel operators, airlines and the London Stock Exchange group itself.
Brent slumps ahead of OPEC
The spread of the coronavirus also pummeled Brent crude prices which are now trading around the $53.3 mark. Even before the latest decline an OPEC technical committee suggested that the cartel should lower its output further by another 600,000 bbl. Events will likely force OPEC members' hands when they meet in Vienna next week, making a cut as good as an inevitability.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.