By Chris Becker
Markets are being spooked again by the coronavirus with US stocks pushed sharply lower over a spike in US cases overnight, sending the USD and bond yields down with them. The 10 year US Treasury yield is now well below the 1% level to 0.9% – a record low – alongside the 2 year, with markets pricing more Fed cuts on the way including one in a couple weeks at the March FOMC meeting. Gold responded with a big surge above $1600USD per ounce and a new yearly high, while commodities prices slumped as oil hit a new low.
Looking at Asian share markets from yesterday where the Shanghai Composite pushed well above 3000 points, up nearly 2% going to the close at 3071 points while the Hang Seng Index is finally breaking free with a solid 2% run on its own to 26767 points. This is a nice bounce off weekly support at the 26000 point level but remains a swing play only, requiring a follow through above the low moving average level at 26400 points at least, which looks improbable given the lack of momentum:
