Market Overview

19 February 2020

Coronavirus starts to cause damage

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 0.29%, and the technological Nasdaq closed with a slight increase of 0.02%.

In the European debt market, most government bonds fell for much of the day while Greek and Italian interest rates ended up rising.

Regarding the European currency, we can see that the Euro is falling again. This is probably the result of the poor performance related to the economic sentiment indicator in the Euro area and in Germany. This effect can be seen both in the EUR/USD and EUR/GBP pairs.

Crude oil, on the other hand, has been on a decline for much of the day, since feelings about the effects of the coronavirus were negative. Despite lower demand forecasts, yesterday the United States announced that it would sanction the largest Russian oil company, Rosneft, for maintaining relations with a Venezuelan oil company. This could affect supply, which eventually led to an increase in the price of the barrel.

On a day marked by greater risk aversion, we could see gold rising as a consequence. It ended up reaching 2013 highs.

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Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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