Stocks Mixed As Corona Virus Causes Concern
US indices started weakly but recovered into the close as the global spread of the corona virus continues. Oil prices hit the lowest in 2-1/2 months.
US30USD
The US30 index hit a 9-day low yesterday amid escalating concerns about the spread of the corona virus.
The 55-day moving average, which has supported prices since October 10, has moved up to 28,344.
The Markit flash manufacturing PMI probably rose to 52.5 this month from 52.4 in December, according to the latest survey of economists.
DE30EUR
The Germany30 index slid to the lowest level in 10 days yesterday, echoing the weak sentiment on Wall Street.
The index is above the 55-day moving average at 13,274, which has supported prices on a closing basis since October 8.
Markit flash PMIs for both Germany and the Euro-zone are due today. January’s readings are expected to come in at 44.5 and 46.8, respectively.
WTICOUSD
West Texas Intermediate (WTI) looks set to fall for a fifth straight day today after hitting the lowest level since November 1 yesterday.
Prices are nearing the 78.6% Fibonacci retracement of the October-January rally at $54.19.
Weekly stockpiles data from the Energy Information Administration showed a drawdown of 405,000 barrels to January 17, less than the 1.0 million analysts had expected.