US markets declined on the last day of the week. Government securities yields are also falling and investors are again turning to the defensive sector. This is due to renewed fears about the economic impact on the global economy. We are seeing an increase in cases of Crown Virus outside China.
Chipmaker companies are leading losses and pulling the S & P500 down, which is about to record its first weekly decline since January. Bonds are also on the way to record lows after US business activity hit its lowest since February 2013. The negative effects on the logistics chains of the epidemic are pushing companies away from new orders.
Oil also remains under pressure. The yen is regaining some of its position this time after its biggest two-day decline since 2017. The four-day winning streak on the US dollar has been interrupted. The euro strengthened against the USD after unexpectedly better economic activity in the euro area.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov