Today’s report on Hubei infected jumped 14,000 after changing the procedure for diagnosing and qualifying potential infected. With this omission, the risk of sentiment is worsened in minutes, which also affects European futures.
Europe is glowing red in the premarket, albeit with minimal changes, with market participants still waiting for more information.
Volatility started to rise again and safe assets such as franc, gold and yen swung up again. Cash flows at this stage remain focused on defensive trading. China is reported to be closing one of its largest refineries and Vietnam to have isolated 10,600 people on suspicion of being infected. There is still no information on data from Indonesia, which worries investors.
WTI retains over $ 50 while short-term consolidation remains in place. However, we will expect oil to remain under pressure as the events around the virus deepen. Bitcoin is already chasing $ 10,400 against the backdrop of risk off the medium.
The euro, the pound, the kiwi and the Australian are also losing ground with the appreciation of the US dollar. The US dollar index is on the verge of reaching 100.
Sentiment remains cautious. The economic calendar today is light. We expect markets to be mostly driven by the news around the virus.
Trader Martin Nikolov