The Covid-19 epidemic in China remains a threat. More cases have been registered outside of Hubei province, which is the most heavily affected region in the country. Moreover, there is a growing number of cases in South Korea, spiking concern. Japan has been affected too, with over 600 people currently in quarantine. The authorities are concerned after news broke out that patients in Australia that were released from quarantine later developed the virus, as Japan has done the same, possibly exposing its population to the virus.
In Europe, today there was a bit of a respite as better than expected fundamental reports were published. The PMI reports from both Germany and the eurozone as a whole performed better than the forecasts, showing that the economy of the European Union is not in too bad of a state. Data from the United Kingdom was also positive.
The eurozone also released the January CPI readings, which met the forecasts, further reassuring investors. As a result, the euro was able to rise above the three-year-low it hit against the American dollar earlier this week.
The stock markets, on the other hand, are not responding very well to the news. Many international companies rely on China for manufacturing and are set to experience production output drops due to the virus, which is pressuring US stock indices.
