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.
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
Asian stocks slide as coronavirus fears spook markets
There’s still a high degree of uncertainty involving the new coronavirus outbreak situation and that is keeping markets very nervous to kick start the week.
Chinese markets may be closed but A50 futures are taking a beating – even down by over 5% earlier – as risk aversion continues to flow throughout markets.
US 10-year yields are down to their lowest level since October, 4.8 bps lower on the day at 1.635% as we look towards European trading. Meanwhile, the likes of the yen and gold are bid as safety flows are the name of the game to start the day.
USD/JPY sits at 109.05 currently while commodity currencies such as the aussie and kiwi are also being weighed lower, alongside the offshore Chinese yuan.
European futures playing catch up to the late gains in Wall Street overnight
German DAX futures +0.8%
French CAC 40 futures +0.6%
UK FTSE futures +0.7%
Just be mindful that the more solid gains we’re seeing in European futures at the moment are more related to the late recovery in Wall Street during overnight trading.
European equities ended in the red yesterday amid concerns surrounding the new coronavirus outbreak and failed to partake in the late surge in US equities. As such, we’re seeing a bit of catch up play at the moment ahead of the cash equity market open.
The overall risk mood is actually more steady with bond yields mildly higher and US futures also near flat levels on the day still at the moment. That is also reflected in USD/JPY which is keeping around 109.50-55 as we begin the session.
The major European bourses are closing lower on the day. Global concerns about the impact of coronavirus have sapped the energy from the stock market.
The provisional closes are showing:
German DAX, -1.0%
France’s CAC, -0.7%
UK’s FTSE 100, -0.9%
Spain’s Ibex, -0.6%
Italy’s FTSE MIB is trading near unchanged
In the European benchmark 10 year debt sector, yields are trading lower on the day. The Italian yields are down the most at -9.3 basis points. The others countries yields are down around 5 basis points each. Below are the basis point changes as well as the high and low yields trading today:
Asian equities rebound as investors brush aside China virus fears
Japanese stocks recover after a weak start, mirroring the mood in Asian equities as investors fade the fear of the new coronavirus outbreak after China vowed to take measures to prevent and control the situation.
The Hang Seng is up by 1.1% while Chinese stocks have recovered strongly with the Shanghai Composite now up by 0.3% after having fallen by ~1% to start the day.
US futures are also up by ~0.5% and that is keeping markets in a more cheery mood to start the European morning. As such, USD/JPY is keeping a little higher at 110.04 currently.