Watch 200 D Moving Average in SPX 3046
Another Day of Risk Off this time led by U.S. Worries from the…. NYT “Doctors suspected infection with the virus, but the patient did not fit the federal criteria for testing. A California coronavirus patient had to wait days to be tested because of restrictive federal criteria, despite doctors’ suggestions. The patient, who has tested positive, may be the first person to be infected through community spread in the United States, the Centers for Disease Control and Prevention said Wednesday.
…AND by this Most New Infections Now Outside China, WHO Says: Virus Update- More coronavirus cases were reported in countries other than China in the past 24 hours for the first time since the initial patient was identified on Dec. 8, the World Health Organization said.
Commentary from Central banks around the world:
Mexico central bank cuts 2020 growth forecast, cites coronavirus risk
GERMANY EXAMINING STIMULUS PLAN ON CORONAVIRUS IMPACT: HB
*GERMAN GOV TO PRESENT PLAN WITH POSSIBLE MEASURES SOON
BoJ’s Kataoka: It’s appropriate for BOJ to lower rates; ready to ease without hesitation if needed; BoJ must deepen –ve rate to make yield curve shape more accommodative; risks to the Japanese economy are tilted to the downside, personally looking at o/l with a cautious eye; Japanese private consumption may weaken further as a trend, the coronavirus outbreak may hurt household sentiment if prolonged; Japan no longer has momentum to push inflation to 2% tgt, hard to see px growth picking up to that lvl; BOJ should strengthen fwd guidance; COVID-19 is a new economic risk with uncertainties high in virus impact
Australian PM Morrison: Ruled out broader & larger fiscal stimulus in response to COVID-19 outbreak
Microsoft tweaks fiscal Q3 guidance on virus-related supply problems- Microsoft Corp. MSFT, shares fell more than 2% late Wednesday after the software giant said it won’t meet some of its guidance for the fiscal 2020 third quarter due to COVID-19.
A surprise from Bank of Korea keeps rates unch at 1.25%, the majority of analyst polled expected a cut; BOK said it’s too early to read overall economic impact of virus outbreak; will provide loan support for virus hit firms
Stocks down again Dax -2.7%, Spain -2.7 Spoos -1.45%, Nasdaq -1.79. Yields lower begrudgingly so 54% chance of a March Cut! April at 100% probability of a Cut, June at almost 2 cuts being priced in by then. Vix above 31 for first time since Dec 2018. Euro a bit of Squeeze ongoing due to the possibility of German Fiscal Stimulus, Dollar trading 98.50 ish. Crude oil I believe the over all proxy for the Virus scares to do Impact on travel and Commerce is down again almost 3%. The Dec/Dec calendar spread which gives you a look a t whole oil curve is trading negative for first time in a year.is trading Negative for first time in a year, Demand destruction.