Global markets showed further signs of stabilisation on Wednesday as investors looked past a rising death toll from China’s coronavirus outbreak to tiptoe back into shares and out of safe-haven assets such as the yen and German bonds.
“There appears to be more transparency, communication in terms of the virus, and that makes it easier to start assessing the economic fallout. So the markets have taken some comfort from that,” said Rainer Guntermann, a rates strategist at Commerzbank in Frankfurt. A Reuters poll predicted China’s manufacturing sector stalled in January, after signs of recovery towards the end of 2019. Several Hong Kong-listed firms warned of hits to profits and Apple CEO Tim Cook warned of supply chain disruptions.
The safe-haven yen was flat but traded above two-week highs touched on Monday while the dollar index too edged lower after approaching two-month highs. The fear of economic damage is reflected also in the US treasury yield curve where three-month yields briefly rose on Tuesday above 10-year borrowing costs — the so-called curve inversion that is seen as a fairly reliable recession signal.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: eNCA - 🏆 49. / 51 Read more »
Stocks tumble as virus toll climbsCoronavirus outbreak is an 'unexpected risk factor' for markets, analysts say
Source: BDliveSA - 🏆 12. / 63 Read more »