US markets remain under pressure, we expect risk off sentiment to persist until the end of the session

On the last day of the week and month, in the midst of the coronavirus, stock sales are accelerating. The bonds are firing upwards, and the potential damage to the global economy is yet to be estimated.

For now, DOW has slowed its growth for 2020 since the beginning of the year. Caterpillar is leading the sale after analysts lowered their expectations for the company’s performance. Amazon is performing well after meeting investor expectations, with the company’s market valuation exceeding $ 1 trillion. 30 – year bonds have gone above 2% yield for the first time since October. Oil remained under heavy pressure as the WTI slipped below $ 52.

The last week of the month remains extremely turbulent for markets following the cannonade of corporate reports, central bank decisions and economic data. All this in the shadow of the deadly epidemic.

The epidemic is expected to reduce US economic growth by 0.4% due to the sharp decline in Chinese tourists and the slowdown in exports to the Asian country. However, in the face of the coronavirus, consumer sentiment is also reporting high values in January.

Elsewhere, Exxon Mobil has been publishing its worst reports in years, with disappointing data in almost all business areas. Boeing’s rating was downgraded from Moody’s to its lowest in history. Visa also published strong reports, Colgate also went into the good reporting series.

We expect the sale to stay until the end of the session because it’s Friday and the end of the month. Risk sentiment is still against risky assets.

Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.

 Trader Martin Nikolov

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