European shares end sharply lower on the day on global growth concerns

Coronavirus hurting major indices

European major indices are ending sharply lower on the back of global growth concerns as a result of the coronavirus.  The provisional closes are showing:
  • German DAX, -2.6%
  • France’s CAC, -2.7%
  • UK’s FTSE 100, -2.32%
  • Spain’s Ibex, -1.9%
  • Italy’s FTSE MIB -2.2%

In the European debt markets, yields are ending sharply lower with Italy leading the way after regional elections turned back attempts from Salvini’s attempt to bring national politics more to the right (and away from the EU).  Investors flocked into the Italian debt instruments.

European yields are sharply lower with Italy leading the way

In other markets as European/London traders look to exit are showing:
  • spot gold up $10.70 or 0.68% $1582.25
  • WTI crude oil futures are down $1.56 4-2.86% at $52.64. That is off the low $52.13.  Brent crude oil futures are down $1.77 or 2.9% at $58.93. It’s low reached $58.50

China’s Zhejiang province says companies not allowed to return to work before Feb 9

Every day is a hit to the global economy

China has announced that the lunar new year holiday will be extended through Sunday but this is a sign that will be pushed back.
Another big question is whether or not the Chinese market opens on Monday as planned.
The bigger problem with Chinese factories closing is the integration of the global supply chain. Inventories can fill the gap up to a point but eventually there is a product or component that needs to be built and exported to keep factories elsewhere open.
In other coronavirus news, Sri Lanka has diagnosed its first patient infected with coronavirus.

The ‘Big 4’ Cryptocurrencies to trade

What you need to know when trading Cryptocurrencies

EagleFX 1
The popularity of Cryptocurrency is on the rise and more and more skeptics are investing in digital assets each day. With people losing trust in central banks, coupled with the allure of investing in a digital currency which could appreciate, these factors have contributed to an industry boom.

What is even more exciting is the options available surrounding Cryptocurrencies nowadays. In the past, investors would simply buy a coin and wait/hope for the value to increase whilst running the risk of having value wiped out of an investment in a volatile market. This is avoidable now thanks to Crypto trading. Much like traditional Forex trading, Crypto enthusiasts can now trade on the projected performance of a coin without necessarily purchasing that asset.

The option of trading Crypto can be far more appealing than investing which comes with constantly monitor price performance. Thanks to leveraged trading on broker platforms, traders can concentrate on: going long and short on a range of Cryptocurrencies opposed to just investing and HODL-ING.

In this article, we will explore some of the major Cryptocurrencies which will suit day traders, scalpers, and swing traders. First of all, let’s consider some factors which contribute to a good Cryptocurrency to trade

Trade over 30 Cryptocurrency pairs with access to leverage of up to 1:100 for digital currency at new broker EagleFX. Continue reading »

German government reportedly sees 2020 GDP growth at 1.1%

Reuters reports, citing unnamed sources on the matter

That is a mild revision higher from their previous estimate of 1.0% growth. Overall, it’s still early days and expect the figure to possibly be revised many more times before the year is up. The next official estimate is planned to be released this Wednesday.

Italian bonds surge higher on Salvini defeat

Italy 10-year bond yields down by over 15 bps to start the day

Italy 10-year yields

  • Italy’s Democrats defeat Salvini’s league in key regional vote
Chances of a snap election is less likely now and that is giving more confidence to Italian assets to kick start the week. Just be reminded that Salvini is the number euroskeptic figure in the country and the result above will bolster Conte’s government a bit more.
The more positive take on the move in Italian bonds today is better reflected in the BTP/Bund spread, where we’re see a significant narrowing in the spread today (141 bps now):
Italy Germany spread