Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Opening Bell: Futures, Equities Drop As Virus Count Escalates; Havens Pop

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewFeb 13, 2020 08:24AM ET
www.investing.com/analysis/opening-bell-futures-equities-drop-as-virus-count-escalates-havens-pop-200507145
Opening Bell: Futures, Equities Drop As Virus Count Escalates; Havens Pop
By Investing.com (Pinchas Cohen/Investing.com)   |  Feb 13, 2020 08:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

  • Coronavirus cases accelerate after methodology change
  • U.S. futures wipe out Wednesday's Wall Street record gains
  • Dollar slips
  • Key Events

    U.S. futures, including for the Dow, S&P 500 and NASDAQ, along with European stocks, are all following Asian shares lower after a significant escalation in coronavirus infections in China was reported earlier today.

    Safe havens such as Treasurys, gold and the yen advanced.

    Global Financial Affairs

    On Thursday, health officials in China added more than 14,840 new cases to the number of people previously reported to have come down with the illness in Hubei province alone, where the outbreak first started. Fatalities in the province rose to 1,310, including 242 new deaths.

    The significant jump is the result of a change in the criteria Chinese health officials are using to diagnose the Covid-19. Consequently, a number of high-level local health officials were sacked. This comes after wide accusations that China is covering up the true impact of the outbreak.

    The three main U.S futures indices have pulled back from their record hghs, and yesterday's Wall Street gains will likely be wiped out during the U.S. session.

    SPX Futures Daily
    SPX Futures Daily

    The contract on the S&P 500 Index is struggling with Tuesday’s shooting star. Traders were given an earlier warning, when trading produced a shooting star also last Thursday—all paying tribute to the Jan. 22 intraday high. When the RSI falls below the 56 level it will form a downtrend, while the lagging MACD is catching up.

    Banks and mining firms pressured the STOXX Europe 600 Index into its first decline of the week.

    Earlier, during the Asian session, Australia’s ASX 200 was the only regional index in the green (+0.47%), fueled by shares of the country’s third-largest bank, National Australia Bank (ASX:NAB), which jumped 1.4% to a three-month high after announcing new share sales and improving business strategy.

    The entire sector received a boost, on optimism of solid financial institution earnings after yesterday, the country’s biggest bank, Commonwealth Bank Of Australia (ASX:CBA), notched a five-year high post its earnings release. Results beat expectations and management announced it plans to return capital to shareholders.

    No surprise, China’s Shanghai Composite underperformed, (-0.71%), though not significantly in our opinion, relative to the gloomy news. Presumably, faith in the country’s ongoing stimulus efforts is keeping demand in place. Hong Kong's Hang Seng was down 0.34%.

    Yesterday, however, Wall Street celebrated, on the belief that the viral outbreak was slowing. All three major indices—the Dow Jones, S&P 500 and NASDAQ Composite—each hit new records, on optimism the economy would now pick itself up, dust itself off and move past the global epidemic. Yesterday’s data such as Singapore retail sales and eurozone industrial production all showed a slowdown, ramifications of the viral outbreak.

    UST 10-Y Daily
    UST 10-Y Daily

    Yields, including for the U.S. 10-year Treasury, dropped the most since Friday. They headed toward the end of a flag whose downside breakout would suggest another leg down in the current downtrend.

    The dollar pared half of yesterday’s gains.

    Dollar Daily
    Dollar Daily

    Both the MACD and RSI are now oversold. Indeed, the latter indicator may be topping out. The USD is also producing its third consecutive shooting star.

    Gold Daily
    Gold Daily

    Gold jumped to its highest level since Jan. 31, as it nears the top of a symmetrical triangle, bullish within the uptrend.

    Up Ahead

    • Earnings season continues with reports due from Alibaba (NYSE:BABA) and American International Group (NYSE:AIG), which just might surprise.
    • On Thursday, U.S. Core CPI will be released. It's forecast to have increased to 0.2% in January.

    Market Moves

    Stocks

    Currencies

  • The Dollar Index declined 0.1%.
  • The euro increased 0.1% to $1.088.
  • The British pound advanced 0.1% to $1.2978.
  • The onshore yuan declined 0.1% to 6.979 per dollar.
  • The Japanese yen increased 0.3% to 109.75 per dollar.
  • Bonds

    • The yield on 10-year Treasuries fell five basis points to 1.58%.
    • The yield on 2-year Treasuries fell four basis points to 1.41%.
    • Germany’s 10-year yield dipped two basis points to -0.40%.
    • Britain’s 10-year yield declined three basis points to 0.585%.
    • Japan’s 10-year yield was unchanged at -0.034%.

    Commodities

  • West Texas Intermediate crude dipped 0.4% to $50.94 a barrel.
  • Brent crude declined 0.7% to $55.38 a barrel.
  • Gold advanced 0.6% to $1,574.75 an ounce.
  • Opening Bell: Futures, Equities Drop As Virus Count Escalates; Havens Pop
     

    Related Articles

    Opening Bell: Futures, Equities Drop As Virus Count Escalates; Havens Pop

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

    •            Enrich the conversation, don’t trash it.

    •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

    •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

    • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
    • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
    • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
    • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
    Comments (1)
    Notvery Goodathis
    Peteymcletey Feb 13, 2020 9:19AM ET
    Saved. See Saved Items.
    This comment has already been saved in your Saved Items
    I think the headlines on https://investing.com have been slightly misleading on new numbers. I imagine shock and awe gets more clicks. I think the pace is still slowing even with the newly added cases. That's good news of course.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

    Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
    Continue with Google
    or
    Sign up with Email