Market Overview

Still as a consequence of the Chinese intervention in the economy in order to prevent the negative effects of the virus on the global economy, European stock markets appreciated in yesterday's session, on February 4^th.

Moreover, following the trend of the last few days, the greater appetite for higher risk assets, such as the stock market, consequently led to a decrease in demand for the debt market. As a result, interest rates on public debts rose in most of the euro area countries. As a consequence, the euro depreciated against the dollar.

With regard to the British currency, that is recovering value in the foreign exchange market after Boris Johnson's speech, two days ago, where he showed discordance regarding future negotiations with the European Union. The PMI result of construction above expectations also contributed to an appreciation of the pound sterling against the euro.

The oil that has been losing value sharply as a result of the recent decrease in demand resulting from what has happened with the Chinese epidemic, reversed this trend yesterday. Behind this change in trajectory is the beginning of a technical meeting which started yesterday between members of OPEC and Russia. The objective is to analyze the recent drop in oil prices and to consider what is the best response to give, which may involve a further cut in supply that could lead to a rise in the price of a barrel.

Gold, which has recently been capitalizing on the uncertainty surrounding the economic impact of the coronavirus, has already reversed the figure as a result of the measures taken by China.

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