Wednesday 26th February: Markets fall as global pandemic fears from Coronavirus rises.

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.79%, Shanghai Composite down 0.59%, Hang Seng down 0.91%, ASX down 2.31%
  • Commodities : Gold at $1645.30 (-0.28%), Silver at $18.04 (-0.84%), Brent Oil at $54.17 (-0.17%), WTI Oil at $49.94 (+0.08%)
  • Rates : US 10-year yield at 1.354, UK 10-year yield at 0.511, Germany 10-year yield at -0.517

News & Data:

  • (AUD) Construction Work Done q/q -3.00% vs -1.00% expected
  • (USD) CB Consumer Confidence 130.7 vs 132.6 expected
  • (USD) Richmond Manufacturing Index -2 vs 10 expected
  • Hong Kong budget to hit record deficit of HK$139 billion with relief measures of HK$10,000 per individual
  • S. trade rep Lighthizer to meet British counterpart as allies gear up for talks

Markets Update:

Asian stock markets are mostly lower on Wednesday following the weak cues overnight from Wall Street amid continued fears that the coronavirus outbreak could escalate into a pandemic. The number of confirmed new coronavirus cases in South Korea topped 1,100 on Wednesday. Adding to the fears, the U.S. Centers for Disease Control and Prevention warned that Americans should begin to prepare for community spread of the coronavirus in the U.S.

Shares in Australia led losses among major Asia Pacific markets as investors withdrew amid concerns over the coronavirus outbreak beyond China, with the ASX 200 falling 2.3% as the sectors traded lower. The moves came as an earlier data release showed the value of construction work done in the December quarter of 2019 declining. Mainland Chinese stocks were mixed.

The Shanghai composite seesawing to trade lower by 0.6% while the Shenzhen component slipped 1.9%. Hong Kong’s Hang Seng index fell by 0.9%. The Nikkei 225 in Japan slipped 0.8% in afternoon trade after dropping more than 3% on Tuesday.

Oil prices recovered some recent losses in Asia, but there are lingering concerns that expected output cuts by major oil producers will not be enough to offset a decline in global energy demand caused by the virus. However, oil could come under more pressure as weekly U.S. supply reports due later on Wednesday are expected to show a rise in inventories, according to a Reuters poll.

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