Yesterday, European markets ended up falling. Its main index - Stoxx 600 - depreciated by 0.02%. The main reason for these events was probably the unpleasant news regarding the coronavirus. In particular, Chinese authorities reported that the number of infected people had increased dramatically due to a flaw in the method used to diagnose patients. Considering this news, it maybe thought that the impact of the virus on the real economy may be greater than initially thought and predicted.
As a consequence, in days of greater risk aversion, interest rates on sovereign public debt tends to fall and this is what happened yesterday in Europe.
Moreover, the Euro continues to fall, and yesterday it hit a two-year low. Therefore, it is possible to observe that in days of greater uncertainty in the markets, and if this uncertainty does not directly affect the United States, the Euro tends to depreciate against the Dollar as the American currency is the main driving currency in the financial markets.
The Pound Sterling, on the other hand, continues to appreciate and therefore its "undervaluation" is corrected, which has been sometimes pointed out by analysts. The fall in the value of the Euro when compared to the British currency was quite significant.
Crude oil continues to recover and the bad news regarding the coronavirus seems not to affect the price trend in any way. In addition, the International Energy Agency (IEA) also predicted a drop in demand in this first quarter, however without any impact on a possible decrease in price. Yesterday the rise was 0.47%.
Regarding gold, on days of greater risk aversion, it tends to increase its value. Yesterday turned out to be one of these days.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.