Market Report 24th February 2020

Market Report 24th February 2020 981 980 Realm

Markets are sharply lower today (Monday) as fears increase over the spread of coronavirus.

as of Friday close:

  • European stocks ended lower amid rising concerns about the coronavirus outbreak after reports said the number of infections due to the virus has risen outside of China.
  • US stocks showed a substantial move to the downside during trading on Friday, adding to the losses posted in the previous session. The Nasdaq and the S&P 500 pulled back further off the record closing highs set on Wednesday.
  • Asian stocks ended the session mostly lower after China reported an uptick in new coronavirus cases, raising concerns the COVID-19 epidemic will eventually expand rapidly beyond its center in China. The new cases are mushrooming beyond China, most notably in Japan and South Korea.

Global Macro

  • The US is releasing the second estimate of Q4 GDP growth in the coming week, alongside durable goods orders, personal income and outlays, and PCE price index. Elsewhere, all eyes turn to China’s NBS PMI survey, the country’s first major data release since the coronavirus outbreak, and to the NPC Standing Committee Meeting on Monday. Other important figures include UK consumer morale, Germany unemployment and inflation, Japan industrial production and retail sales, and India Q4 GDP growth.
  • The IHS Markit Germany Manufacturing PMI increased to 47.8 in February of 2020 from 45.3 in January, beating market forecasts of 44.8, preliminary estimates showed. It is the highest reading in 13 months, although it still pointed to a contraction in factory activity, which has been falling since January of 2019. Almost half of the index’s gain in February was attributable to deterioration in supplier delivery times, linked to coronavirus-related disruption in China.
  • The IHS Markit US Services PMI dropped to 49.4 in February 2020 from 53.4 in the previous month and well below market expectations of 53, a preliminary estimate showed. The latest reading signaled the first decline in business activity since February 2016 as new business declined the most since the series began in October 2009. new export orders also dropped amid the concerns about the impact of the coronavirus outbreak. The level of outstanding business fell and the pace of job creation softened. On the price front, input cost inflation eased to five-month low, while output charges rose only fractionally. On a more positive note, business confidence reached the strongest since last June. 

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