The latest: the total number of people diagnosed with more than 20,000, Vulcan mountain hospital officially received the first batch of patients.

More than 20,000 people have been confirmed in China, with 425 deaths, more than those of SARS, and 632 cured and discharged from hospitals, according to the latest data released by the national health and construction commission on Tuesday. But with China taking steps to ease the impact of the coronavirus outbreak and Wall Street closing mostly higher overnight, spot gold rose and fell sharply in the short term, the market continued to focus on the outbreak and U.S. President Donald trump’s state of the union address on February 4.

The latest outbreak: 3,235 new cases were confirmed and 20,438 cases were confirmed and 425 deaths were confirmed.

So far, a total of 221,015 close contacts have been traced, and 12,755 people have been released from medical observation on the same day. Currently, 171,329 people are under medical observation. We have received a total of 33 confirmed cases from Hong Kong, Macao, and Taiwan: 15 from the Hong Kong special administrative region, 8 from the Macao special administrative region and 10 from the Taiwan region.

Comparing with the report of the world health organization (WHO), the death toll of the new coronavirus pneumonia has exceeded the 349 cases of SARS reported in mainland China on 31 July 2003.

China’s stock markets opened lower on Monday, the first day of the year of the rat, amid fears of a coronavirus outbreak. The Shanghai Composite index closed down nearly 8 percent, its biggest one-day drop in more than four years. Both the offshore and onshore renminbi fell below the 7 marks, while commodities traded in Shanghai, from copper to palm oil, hit the daily limit.

To ease pressure on the economy, the people’s Bank of China made an rmb1,200bn reverse repurchase on the first working day after the lunar New Year holiday and cut interest rates for seven and 14 days.

In order to hedge the impact of open market reverse repurchase expiration and financial market fund concentration expiration and maintain reasonable and abundant liquidity in the banking system in the special period of epidemic prevention and control, the central bank announced earlier on Monday that it conducted 1.2 trillion yuan reverse repurchase operation and lowered the reverse repurchase rate by 10 basis points.

Traders said the currency was likely to remain weak in the short term as currency markets were closed during the lunar New Year holiday and risk aversion was exacerbated by the spread of pneumonia.

Xie yaxuan, chief macro analyst at China merchants securities, said there was great uncertainty about the development of the pneumonia outbreak, but it was already partly reflected in the trend of the renminbi and the material impact of the outbreak would need to be closely assessed in the future. The current outbreak is likely to be a short-term shock, with no fundamental impact on the medium – to long-term trends in the Chinese economy or the renminbi exchange rate.

Xie yaxuan said that investors should be rational about the short-term fluctuations in the trend of the renminbi. There are many factors that affect the exchange rate of the renminbi. Investors should be more comfortable with exchange rate fluctuations within the intraday-day plus or minus 2 percent range.

The dollar traded at 6.9779 on Feb. 4, up 530 points from the previous session. The central parity rate fell to its lowest level since December 30, 2019, the biggest drop since July 20, 2018.

The people’s Bank of China boosted liquidity again on Tuesday, with a seven-day reverse repurchase of rmb380bn in the open market today. The people’s Bank of China will conduct a rmb120bn 14-day reverse repurchase operation in the open market today.

In addition, according to CCTV news, Wuhan Vulcan mountain hospital began to officially receive confirmed pneumonia patients infected with the new coronavirus at about 9 PM today, which was the first group of patients to receive treatment at the hospital.

Encouraged by China’s efforts to ease the impact of the coronavirus outbreak, all three major U.S. stock indexes ended the day higher. Most Asian markets rose on Tuesday, with A-shares opening about 2 percent lower before quickly rebounding into the red.

John Doyle, vice president of trading at Tempus, Inc. But to be honest, I don’t think there’s any difference between Friday and Monday. I think the market would like to see China’s positive attitude in trying to contain the virus and mitigate the impact on its economy.”

“Investors are not just focused on the potential downside of coronavirus,” said Michael Arone, chief investment strategist at State Street Global Advisors. “historically, these events have proven to be a buying opportunity for investors, and people may be somewhat comfortable with our progress on coronavirus.”

Spot gold fell sharply to $1575 in the short term as risk appetite improved and briefly touched around $1579 earlier in the day after the latest outbreak data was released. In addition, the dollar’s strength also puts some pressure on gold prices.

Bart Melek, head of the commodity strategy at TD Securities, said: “China has been taking very aggressive measures to make sure [the coronavirus] is under control, which has helped sentiment. The dollar has jumped and most importantly we are seeing a rebound in equities and people are likely to take profits and position themselves appropriately.”

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