Markets are trading with a hint of caution as bonds continue to rise amid concerns over the spread of the deadly virus this week.
Softer risk flows continue to hold Asia’s stock under pressure, and slower Facebook growth since the US session also does not serve the sentiment. Thus, the circumstances of the situation do not give investors much optimism and European indices will start the session in the red.
There is still a lot of uncertainty about potential complications with the virus – not just healthy ones – fears that it will cause a slowdown in the regional and global economy are already a fact – and that will continue to weigh on markets for at least some time, especially if the World A health organization has declared a danger.
Gold remains in vogue during the European session, along with the yen and the franc, with safe haven assets attractive to cash flows.
Good corporate reports in the US failed to lighten the situation, and vice versa – we witnessed a gain later in the session as the fragile balance tilted the scales in the direction of sellers.
I expect an attempt today to recover the lost positions, but without a significant catalyst, I just don’t see how this can happen. Bank of England will decide on interest rates with no change in rate, but it will still be interesting what Mark Carney will say 30 minutes later at 2.30pm about the future of monetary policy, Brexit and the country’s trade partnerships after parting with Europe.
Trader Aleksandar Kumanov