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Risk off, COVID-19 situation worsens, defensive assets go up

Europe Tuesday morning: Early indications for futures are red. Opening with a gap down and the situation with COVID-19 gets worse. Apple first announced that there would be serious damage to their suppliers and their Q4 results. The head of the hospital at Wuhan (the epicenter of the epidemic) has died. It is supposed that he was treated in the best and most modern way. New studies show that the virus strikes the organs similar to the SARS virus, the incubation period changes, and the likelihood of mutation for airborne transmission is absolutely possible.

Cash Flow: We have a risk off with recent events. The yen, gold and Swiss franc rise in value, with the yen leading to FX winning currencies. The AUD is the worst since it became clear from the latest RBA report that they were planning to cut interest rates two weeks ago. The pound and the euro remain in red territory, but with minimal changes. Today, the economic calendar contains macro data for the euro area and the UK.

Bitcoin retains over $ 9,700, oil stays below $ 52, with upward movement remaining at this stage.

We have a rise in volatility as of now the VOLX (VIX derivative) is up by nearly 2%.

Today, in addition to the data, the driving factor will be the news surrounding the development of the virus.


 Trader Martin Nikolov


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