The new coronavirus shakes the Asian markets

Daily Analysis - 22/01/2020

Virus outbreak hits Australian dollar

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On Wednesday the Australian dollar fell to a very weak level registering a six-week low while traders worried about a possible outbreak of the strong new coronavirus in China. If this happens then it could generate more problems for the Chinese economy. The Chinese economy is already starting to slow down due to the U.S.-China trade war and a virus outbreak will put the county in a very difficult position.

The virus, that can cause a new type of pneumonia, has expanded to cities including Beijing while the number of cases in China more than tripled. The Australian dollar, usually handled as a proxy bet on the Chinese economy, dropped to $0.6826.

Oil extends its declines


On Wednesday, Oil continued to extend its declines while the International Energy Agency projected that the market will have a plethora of reserves in the first half, creating some comfort regarding anxieties about interruptions that have cut Libya’s crude output. U.S. oil dropped 29 cents, to $58.08 a barrel, having decreased 0.3% in the previous trading session.

Brent crude fell about 24 cents, at $64.34 a barrel following a decline of about 0.3% yesterday.

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Boeing 737 Max delay sends the stock lower


Yesterday the aircraft giant Boeing announced that it does not anticipate early permission for the return of the embattled 737 MAX. What the company expects is that the approval may come mid-year, due to an extended certification process and expanded regulatory analysis of its rejected flight control system, moving the aircraft manufacturer’s shares under. The stock fell to 302.99 before retracing back to 313.16.

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Dow dropped 100 points after the statement of first case of new virus in US


On Tuesday following the Centers for Disease Control explained to Reuters that a passenger from China was diagnosed with coronavirus in Seattle. That is officially the first diagnosed patient in the U.S. Following the statement Stocks retraced back. The Dow Jones Industrial Average fell more 150 points before returning to 29,305.74 early today while at the release of the new case in the U.S, the S&P 500 fell 0.3% to 3,320.78 before going back to 3,375.37 today.

 

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