We expect the coronavirus to remain a major driver of the markets next week

We saw heavy selling this week because of fears of a deadly virus in China that has spread rapidly to other countries. The virus has infected nearly 10,000 people at this stage and has killed 213 people.

The situation is aggravated by the shutdown and freezing of the Chinese economy, and the virus is expected to peak next week. Markets are evaluating the possible effects of the virus on the global economy and on China’s.

We expect sales of risky assets to continue next week for fear of the spread of the virus. Until positive news emerges, markets will remain under intense pressure, while safe haven assets will rise in value because of their demand from investors.

Despite the good reporting season and macroeconomic data, the fear of contagion is absolutely outweighed by sentiment. The major world indexes are undergoing key supports, which brings the issue of deeper correction to the fore.

More important corporate reports for next week include Alphabet, Sysco, Centene, Chipotle Mexican Grill, Ford Motor, Microchip, Prudental Financia, Seagate, Walt Disney, Cincinnati Financial, General Motors, Merck & Co, MetLife, Qualcomm, Activision Blizzard, Baidu, Motorola, Philip Morris, Snap-on, Twitter, AbbVie.

More important macro releases next week are PMI data from the US and Europe, the decision on Australia’s interest rate and NFP data from the US.

 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