Tuesday, February 11, 2020

Euro hits four-month low; Coronavirus death toll rises above 1,000

  • China
  • Dollar
  • Euro
  • Stocks
  • US earnings' season


Market Recap: Euro hits four-month low; Coronavirus death toll rises above 1,000

Stocks on Wall Street rebounded on Monday thanks to generally upbeat investor sentiment. Workers in China returned to their jobs after an extended holiday amid the coronavirus outbreak in the country, which is expected to lift some pressure off the Chinese economy. The S&P500 and Nasdaq closed at new record highs on Monday, with the technological sector leading the S&P500. The energy sector was the only sector in the S&P500 that fell on Monday. AMD and Nvidia were among the top performers of the S&P500, rising 5.09% and 4.52% respectively.

Indexes Change (%) Net Change Closing Price
Dow Jones +0.60% +174.31 29,276.82
S&P500 +0.73% +24.38 3,352.09
Nasdaq +1.13% +107.88 9,628.39
*Source: Bloomberg

The dollar hit a four-month high against the euro on Monday, as traders likely expect the US economy to remain strong despite the coronavirus outbreak. The Australian dollar led gains in the basket of major currencies, advancing 0.21% against the dollar to recover some losses earlier in the year. Currently, AUD/USD is 4.28% lower year-to-date.


Safe haven assets were mostly higher on Monday, after the coronavirus death toll surpassed that of SARS. Gold and US Treasuries gained, while the yen inched slightly lower against the dollar. Benchmark 10-year yields gained 1.4bps to 1.57%.

Safe Haven Assets Change (%) Net Change Closing Price
Gold +0.11% +1.71 1,572.15
Silver +0.37% +0.07 17.68
JPY -0.02% -0.02 109.77
*Source: Bloomberg
US Treasury yields Change (bps) Yield (%)
2-Year -0.8 1.39%
10-Year -1.4 1.57%
30-Year -1.0 2.04%
*Source: Bloomberg

Oil continued to be plagued by the virus outbreak in China. Brent and WTI both fell on Monday. Brent crude oil futures fell 2.20%, or US$1.20 to US$53.27 per barrel, the lowest since December 2018.

Oil Futures Change (%) Net Change Closing Price
Brent Crude -2.20% -1.20 53.27
WTI Crude -1.49% -0.75 49.57
*Source: Bloomberg

Stocks in Asia looks set to track gains in the US. The Tokyo Stock Exchange will be closed today for Japan’s National Day holiday and will reopen tomorrow. The KOSPI started Tuesday's trading session 0.56% higher and continued to advance in the early part of the trading day. The death toll of the coronavirus outbreak hit 1,018 while the number of confirmed cases climbed to 43,099 on Tuesday morning.

Asia Change (%) Net Change Last Price As of (GMT +8)
KOSPI Index +0.89% +19.62 2,220.69 9:07:00 AM
ASX200 Index +0.71% +50.07 7,062.60 9:06:35 AM
*Source: Bloomberg

Under Armour (9.30pm) is set to report earnings today while Lyft (5.30am) and SoftBank (3pm) will announce theirs tomorrow. (All timings in GMT +8)

Economic releases for the day ahead include (all timings in GMT +8):

  • UK Dec Industrial Production (5.30pm)
  • UK Dec Manufacturing Production (5.30pm)
  • UK Q4 GDP (5.30pm)

Fed Chair Powell Speaks Before the House Financial Panel (11pm)