NFP day, markets will be completely focused on the data, coronavirus is in full swing

Asia in a nutshell: Markets in the Far East have sunk in the wake of new infections in Japan and South Korea, as well as increased deaths in China. There are a potential 1,386 people infected in South Korea, and 61 ship passengers in Japan are quarantined, 11 of them US citizens. Cases in Singapore are also increasing. Currently, there are 31,161 people worldwide infected, with 636 deaths in China, with two out of state.

We see a cure for risk off, but moderate. Despite the worsening of the virus situation, European futures point to a weaker start but with minimal changes. Today’s most important event for the markets will be the Nonfarm payrolls data, which comes out at 3:30 p.m.

DAX futures are down 0.21%. The Stoxx50 is down 0.20%, the CAC is 0.27% lower and the UK100 is 0.23% down.

With safe haven assets, gold, Swiss francs and Japanese yen hold up in positive territory. The euro has seen a minimal increase against the US dollar, pounds also. Oil remains slightly altered, holding over $ 50. The Australian dollar is the foremost currency on the FX front. AUD / USD is down about 0.30% after Lowe said the bank was pushing for more interest rate cuts and declared coronavirus as a serious threat to the Australian economy.

Next to the NFP data itself, we will expect rather tight, range trading with minimal changes. We can only expect a sharper movement in both directions ahead of the news because of the positioning of market players.

Along with the economic data package we have today, sentiment will also be triggered by fears of the virus. For now, sentiment is risk averse, and traders are cautious.

 Trader Martin Nikolov

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance