The coronavirus situation in China continues to dominate global news. Because of the dangerously easy way to transmit the virus, the number of cases has risen from just a few hundred people two weeks ago, to over 4000 today, with at least 100 deaths. Moreover, there have been a few cases registered in the United States, indicating that the virus is still spreading.
The Chinese economy continues to suffer amid the epidemic, as transportation and businesses are closed to limit exposure to the virus. Normally, this time of year is among the most profitable for China due to the New Year’s festival celebrations, but this year people are urged to stay at home and avoid travel. The Chinese yuan reached a new low in light of all this.
After yesterday’s awful performance, today the stock markets are in recovery mode. The S&P 500, Dow 30, and Nasdaq 100 futures all marked modest gains, as did European Stoxx 600. One of the most exciting events on the stock markets today will be the report on Apple’s earnings, where a big profit is expected, considering the recent launch of Apple TV.
In addition, today the Federal Reserve is starting its January policy meeting. Right now, investors do not expect any adjustments to be made to the current interest rates. Today we also expect consumer confidence data, as well as the latest durable goods orders report, which could affect the value of the USD, as well as the tone of the meeting.
