- Home
- Analytics
- Market News
- Market Overview
- The Virus is Taking Other Routes
Market Overview
The Virus is Taking Other Routes
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%. The sectors which fell the most were the energy, banking and the automobile sectors - car sales sank 92% in China.
The debt market, on the other hand, revealed that the interest rates of the main countries ended up rising. Despite a risk aversion, it was possible to observe the rise of Eurozone interest rates - investors may have preferred other safe assets.
The European currency ended up appreciating substantially on Friday. Basically, the good Manufacturing and Services PMI data for the Eurozone, and in particular for Germany, contributed to an increase of 0.68%.
The bad news led to a drop in oil prices. The Institute of International Finance (IFI) revealed on Friday that demand for oil in China is expected to be lower than initially forecasted. As a result, crude oil fell by 1.22%.
Gold, on a typical risk aversion day, appreciated substantially by 1.31%.
Disclaimer:
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2023 Teletrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Please read our full Terms of Use.
To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
