China’s Economic Impact and Anxiety on Coronavirus Hits Asian Trading

As per the latest Asian trading update, the traders are shifting their high-risk investments to low-risk investments with full steam for the growing anxiety over China’s swiftly spreading Coronavirus and its effect on the Chinese economy.

On Wednesday, investors had expressed their concerns over China’s Coronavirus impending economic impact on hold and supported the upbeat US and Australian markets. Besides, the Asian stocks tracked Wall Street rebounded overnight, which was driven by Apple Inc’s earnings.

While re-assessing the situation on the economic impact on the Coronavirus, the death toll in China has raised to 130+ and about 6000 confirmed cases of this outbreak. After returning from the lunar New Year holiday, Hong Kong Markets fell steeply to 2.5% on China’s Coronavirus anxiety.

China’s National Health Commission (NHC) remarked that the country’s Coronavirus death toll reached 170, at the same time, the number of infected victims increased to 7,711. Moreover, Japan, the US, New Zealand, Singapore, and Taiwan removed their nationals from Wuhan and quarantined them.

Investors expressed their concerns over the US Federal Reserve’s (Fed) over the US economic outlook, despite the increasing pressure in China. The stocks which were traded in Asia accumulated substantial loss, which was followed by a 5 percent sell-off in Taiwan stocks.

In the middle of increasing risks, yields on a ten year US treasuries benchmark had a direct hit of a new three month low of 1.5600 percent and while towards the close of the session, S&P 500 futures dropped to 0.60 percent. Additionally, oil prices dropped to nearly 1 percent over the downward economic trend, as the outbreak played a very significant role in the oil demand growth prospective.

Nevertheless, EUR/USD and cable traded relatively flat by keeping its current trading range ahead of the German macro releases and the base rate decision of Bank of England (BOE), which is due later Thursday.

Taking into account the encouraging US macro data, China Coronavirus outbreak and its impact on the US-China phase one trade deal, the Fed chair Powell’s economic outlook for the first six months will be closely scrutinized.

source : forexnews صخقمي

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