Market Sentiment Hit by Coronavirus and Apple | Webinar
Market sentiment analysis:
- Trader confidence has ebbed as concerns grow about the possible hit to the world economy from the coronavirus outbreak.
- A sales warning from Apple has also damaged sentiment, prompting traders to opt for safe havens at the expense of stocks and other riskier assets.
Trader confidence hit by coronavirus and Apple
Traders have become more cautious about possible damage to the global economy from the coronavirus outbreak, with Apple warning that sales will fall short of target due to the impact of Covid-19. According to the World Health Organization, data suggesting the epidemic had slowed should still be viewed with caution.
In response, stock prices, the Australian Dollar, the Euro and oil prices have all dropped back, helping to boost havens such as gold, US Treasuries and the US Dollar. Moreover, these market moves could yet extend despite China’s likely decision to opt for more policy stimulus.
US Dollar Index (DXY) Price Chart, Four-Hour Timeframe (January 30 – February 18, 2020)
Chart by IG (You can click on it for a larger image)
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.