Open Jan 22

In Asian Equity Markets Mainland Chinese stocks fell during Wednesday morning trade amid heightened concerns over the spread of the coronavirus that has killed 9 in China so far. The Shanghai composite was down more than 1%. Hong Kong’s Hang Seng index, which led losses among major Asian markets on Tuesday, rose slightly. Elsewhere in Asia, the Nikkei 225 was 0.19% higher in morning trade while the Topix index added 0.17%. The Kospi in South Korea also gained 0.16%.


In Currency Markets the yuan fell and the Australian dollar hit a six-week low on Wednesday as investors feared the outbreak of a new coronavirus in China could create more headaches for the Chinese economy, which is already slowing because of the U.S.-China trade war. The yuan was steady after dipping earlier. It fell about 0.55% on Tuesday, its biggest decline in almost five months, in the onshore trade. It last stood at 6.9063 per dollar, almost flat on the day.


In Commodities Markets oil prices eased on Wednesday, extending declines as the IEA forecast a market surplus in the first half, helping ease concerns about disruptions that have slashed Libya’s crude output. Brent crude was down 24 cents, or 0.4%, at $64.35 a barrel, after falling 0.3% on Tuesday. U.S. oil fell 29 cents, or 0.5%, to $58.09 a barrel, having declined 0.3% the day before. The head of the IEA, Fatih Birol, said on Tuesday he expects the market to be in surplus by a million barrels per day (bpd) in the first half of this year.


In US Equity Markets stock indexes fell on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF paused a record-setting rally on Wall Street. The S&P 500 fell 0.23% to 3,322.12 and the Nasdaq Composite slipped 0.09% to 9,380.87. Hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped about 4%.


In Bond Markets U.S. Treasury prices surged on Tuesday, pushing yields lower as risk appetite dropped, amid worries about the potential fallout from a lethal virus that has broken out in China. U.S. two-year, 10-year, and 30-year yields fell to two-week lows on the news. U.S. 10-year yields fell to 1.769%, from 1.835% late on Friday. Earlier in the session, two-year yields fell to two-week lows of 1.766%. U.S. financial markets were closed on Monday for the Martin Luther King Jr holiday.