 Global markets are clearly in deep risk-off mode today. In particular, with the sudden explosion in coronavirus cases in Italy (150 infections and 4 deaths), European stocks are suffering their biggest plunge since 2016. Italian stocks leads the decline, down -4.5%. South Korea is even worse (833 cases and 8 deaths) while KOSPI dropped -3.9%. Gold hits 7 year high at 1689 while WTI crude oil dives nearly -4%. DOW future is currently down more than -800 pts at the time of writing. US 10-year yield is down -0.0916 at 1.383, with 1.4% handle broken. The currency markets is comparatively quiet. Yen, Dollar and Swiss Franc are currently the strongest ones. Canadian Dollar is the weakest, as pressured by falling oil prices. Sterling follows as the second weakest, and then Australian Dollar. Technically, USD/CAD's pull back from 1.3329 should have completed at 1.3202 and retest of 1.3327/9 resistance zone should be seen next. Decisive break there will affirm near term bullishness for retesting 1.3664 medium term top. EUR/CHF is finally picking up downside momentum. Recent down trend should target 1.0394 projection level next. In Europe, currently, FTSE is down -3.41%. DAX is down -3.97%. CAC is down -3.92%. German 10-year yield is down -0.056 to -0.485. Earlier in Asia, Japan was on holiday. Hong Kong HSI dropped -1.79%. China Shanghai SSE dropped -0.28%. Singapore Strait Times dropped -1.22%. |
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