China Appears to be turning the proverbial Corner as workers return to their jobs…
(Reuters) – As many parts of China ease coronavirus travel curbs, main manufacturing hubs in the east and south are seeing hundreds of thousands of migrant workers returning to work and more traffic on the roads during rush hours.
Mainland China reported nine new coronavirus cases outside the epicenter of Hubei on Monday, the lowest since the national health authority started publishing nationwide daily figures on Jan. 20.Several provinces have lowered their coronavirus emergency response measures, allowing more flexibility on transportation and helping firms resume production
…Too bad the market’s focus is on places outside of China
that an Italian tourist traveling from the infected Lombardy region in northern Italy to Tenerife (Canary Islands Spain) was confirmed to have been infected with the coronavirus. As a result, 1000 fellow tourists at the hotel where he is staying have been quarantined (Reuters)
Bloomberg published Monday showed that of the six places with the fastest growing case counts, four are outside China — South Korea, the Diamond Princess cruise, Italy, and Japan
S Korea have raised their warning level to 3 (highest level) adding the outbreak is widespread & ongoing; 144 more virus cases reported, total now stands at 893; 11 deaths reported; gvt to implement containment policy in Daegu & Cheongo (Reuters)
Iranian Deaths increase by 3 totals is Now 15, highest number outside of China. Iranian Health official was diagnosed with the Virus
The Question in the Markets eyes is when will the Spread stop the longer we go with no containment the more the markets will feel uneasy. The Economic Impact of the Virus is starting to Show up in more Companies outlook United airlines abandoned profit outlook and MasterCard Cuts its forecast all due to impact of Covid-19(BBG). A recent survey showed that Luxury item sales could drop by $44 Billion as Chinese Shoppers stay away, this will have a bigger impact on European stocks then U.S.
A bit Of Bounce overnight in Stocks lets look at the hotspots as a proxy for overnight sentiment SK Kospi closed 1.18% higher, Italy’s Mib unchanged as I type but the Index has fluctuated between gains and Loses so far today. Gold trading down .5% but it has been all over the map up down sideways overnight, Treasury Yields Unchanged to higher, Spoos +12 handles, Nasdaq +.7% let’s see if the bounce is for real or a tape bomb knock it off track. A couple of Drug Companies working on a treatment, Gilead Science is the one being talked up the most. Trump has gone out of his way to talk stock market higher and he once again mentioned middle class tax cut.