US virus case rattles markets
Fiona Cincotta February 27, 2020 9:58 AM
European markets are set for another day of losses after the first case of the coronavirus was reported in the US
European markets are set for another day of losses after the first case of the coronavirus was reported in the US. A news conference by President Trump late yesterday did little to assuage investors’ nerves; instead US stock futures are dropping this morning, pointing to a lower open on Wall Street later in the day.
Yesterday was the first day that the number of new cases outside of China exceeded those in China adding fuel to concerns about the effect of the virus on other economies. In London the most exposed stocks remain airlines, holiday companies, miners and oil producers. However, topping the lineup of FTSE losers is WPP which shed 15.6% after it reported a slowdown in revenue in the last quarter of 2019. The world’s largest advertising company also warned that it did not expect 2020 to provide better results after it lost some of its major clients.
Providing some counterbalance to the sliding index were Hikma Pharmaceutical and British American Tobacco, both reporting increases in revenues. BAT surprised investors with better-than-expected full-year profit generated from traditional tobacco sales and higher pricing. Hikma also threw in a generous dividend increase following a 10% increase in operating profit.
Brent crude continues to drop
Brent crude has been further eroded by the spread of the coronavirus and has slipped briefly below $52 overnight. It is currently bouncing in a channel between $52.6 and $52.84 with little to prop it up in terms of fundamental news. The OPEC Vienna meeting may offer some respite towards the end of next week but before then the pandemic is likely to push prices even lower.
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.