Fiona Cincotta March 6, 2020 5:27 AM
Asian markets closed uniformly in the red this morning and now European markets are following in the same direction.
Asian markets closed uniformly in the red this morning and now European markets are following in the same direction. With so much uncertainty about the global spread of the coronavirus and the fact that its spread in Europe and the US is accelerating, short term investors are battening down the hatches ahead of the weekend.
Whitbread, which only last week announced an expansion into the German hotel market, is being pummeled after cases of the coronavirus in Germany rose to 555 over the last few days. Airlines are also under pressure, digesting the collapse of Exeter-based airline Flybe. With many flights within Europe, to Asia and across the Atlantic continuing to be cancelled, EasyJet and IAG are among the top fallers on the FTSE this morning, both trading more than 4% lower.
OPEC and Russia at loggerheads
OPEC now wants to implement much bigger output cuts than at the beginning of the coronavirus spread, pushing for 1.5m barrels to be pulled out of the market. The crunch will come later today when OPEC oil ministers meet with Russia to agree on a joint move as Russia has so far resisted this proposal. A drop in Brent crude prices to $48.9 may present an incentive.
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.