Yesterday there continued to be a sense of expectation around news about the coronavirus. The behaviour of the markets throughout the day was mixed, with a greater appetite for risk being observed in the first half of the day, while greater aversion was identified later on.
In particular, equity markets ended up having a mixed day. On the other side of the Atlantic, the S&P 500 lost 0.38% while the Nasdaq appreciated by 0.17%. Moreover, the Stoxx 600 - which is the index that includes the 600 largest listed companies in Europe - dropped by 1,82%.
A month ago, I wrote about the uncertainty that hovered around the coronavirus. Basically, the article stated that the vagueness connected to the situation was great, but that, until then, the virus had barely affected the real economy. From then until now there is only one thing that is certain: its impact is real and its consequences are serious.
If there were about 6000 cases a month ago and 100 deaths in more than 15 countries, now these numbers look very different. Now there are about 80,000 cases in 30 countries and more than 2,600 deaths.
Yesterday, the concern about the coronavirus continued to be very present. The increase in the number of cases, especially in Europe and Italy, as well as the concern about a possible pandemic, is causing anxiety in the financial markets.
As a consequence of this, it was possible to observe a decline in the main world stock markets. In particular, the Stoxx 600 fell by 1.76%, while the S&P 500 depreciated by 3.03% and the technological Nasdaq dropped by 2.77%.
The debt interest rates of the main eurozone countries, on the other hand, were mixed.
Yesterday was marked by fears surrounding the coronavirus. The virus arrived in Europe and more precisely, in Italy. Also, there are already several borders in the Middle East where restrictions have been introduced or where they have even been closed. Every day the death toll has been increasing and yesterday the numbers also increased in the main affected countries - China, South Korea and Japan.
This alarming news was probably the cause of changes in the financial markets and on the European benchmark index - Stoxx 600 - which fell 3.79%, which has been the sharpest drop since 2016.
Last Friday was marked by a great sense of risk aversion. Its origin was essentially the spread of the coronavirus outside Chinese territory. Not only China, but also South Korea and Japan reported an increase in people infected with the virus.
This ended up causing a decrease in the main world indices which eventually led to them closing at a lower position from the previous day. The Stoxx 600 ended the session by depreciating by 0.49%, while the S&P 500 fell by 1.05% and the technological Nasdaq dropped by 1.79%.
Yesterday was a day marked by the growing doubts that arose regarding the exact number of cases affected by the coronavirus. The day started confidently, with the notion that the number had fallen, however the day ended with doubt about those same numbers.
Consequently, after this news, the main world stock exchanges started to fall and the day closed on negative ground. In particular, the European benchmark index, Stoxx 600, fell from a historical high to a reduction of 0.86%. Then in the United States, the S&P 500 fell by 0.27%, while the Nasdaq dropped by 0.67%.
Yesterday was marked by a reduction in the number of coronavirus infections as well as the news that Chinese authorities may intervene in the aviation sector in order to mitigate the negative impacts of the virus. The main interest rate of the Chinese central bank was also reduced.
On a day marked by a greater appetite for risk, we can see an appreciation of the main world exchanges. The main European index, Stoxx 600, increased by 0.83%, while the S&P 500 rose by 0.27% and the technological Nasdaq by 0.87%.
Yesterday was marked by Apple's announcement which revealed that it will not be able to reach its revenue target for this first quarter due to the negative effects of the coronavirus. In addition, the British bank HSBC also announced that it will reduce its workforce by 15%, also pushing the entire financial sector into negative ground.
With this less positive sentiment, the main European exchanges closed the day on a lower position. In particular, the Stoxx 600 depreciated by 0.38%, while the S&P 500 ended up depreciating by 0.
The main European stock exchanges were up and reached historical highs yesterday. New economic stimulus from China, as well as many other Asian countries, could thus explain the positive feeling yesterday - in particular, a decrease in the main interest rates of various central banks are expected and, as a consequence of this, reductions in taxes may also be expected. The Stoxx 600 ended the day on a high, having risen by 0.43%.
In the debt market, the interest rates on the bonds of main European countries had a mixed behaviour throughout the day.
Last Friday, it was possible to observe a downward trend in the main European stock exchanges. The day turned out to be characterised by a mixture of tendencies once there was a rising trend which eventually achieved a historical peak - then, however the trend reversed and the Stoxx 600 eventually closed the day by falling 0.1% when compared to the previous day.
In the debt market, the appetite was higher and most of the European debt interest rates ended up falling.
The Euro had a mixed variation throughout the day. Eurozone GDP was expected to grow by just 0.