According to the latest data of the national health and fitness commission on Friday (January 24), a total of 830 new cases of coronary pneumonia have been reported. Spot gold continued to hover around the 1560 mark as Asian markets were little changed as China was closed for the New Year’s Eve holiday. This session, the market also needs to focus on the series of PMI data in Europe and the United States, which may trigger short-term market volatility.
Latest data on health and fitness commission: a total of 830 cases of newly diagnosed coronary pneumonia
Confirmed cases and deaths rose sharply this week as the outbreak of the new coronavirus intensified sharply ahead of China’s lunar New Year holiday, stoking risk aversion.
According to the People’s Daily, 259 new cases and 8 new deaths were reported in 27 provinces (autonomous regions and municipalities directly under the central government) between 0 and 24:00 on January 23. Six new cases were cured and discharged from the hospital. Nineteen provinces (autonomous regions and municipalities directly under the central government) reported 680 new suspected cases. A total of 29 provinces (autonomous regions and municipalities directly under the central government) have reported outbreaks, with four more provinces (autonomous regions) in Inner Mongolia, Shaanxi, Gansu, and Xinjiang.
By 24:00 on January 23, the national health commission had received a total of 830 confirmed cases of pneumonia from 29 provinces (autonomous regions and municipalities directly under the central government), of which 177 were severe cases and 25 died, including 24 in Hubei province and one in Hebei province. 34 cases have been cured and discharged from the hospital. A total of 1,072 suspected cases have been reported in 20 provinces (autonomous regions and municipalities directly under the central government).
We have received a total of 5 confirmed cases from Hong Kong, Macao, and Taiwan, including 2 from the Hong Kong special administrative region, 2 from the Macao special administrative region and 1 from the Taiwan region. A total of 9 cases have been reported from abroad, including 3 cases in Thailand (2 cases cured), 1 case in Japan (cured), 1 case in South Korea, 1 case in the United States, 2 cases in Vietnam and 1 case in Singapore. So far, 9,507 close contacts have been traced, 1,087 have been released from medical observation, and 8,420 are under medical observation.
The move came as the who continued to convene an emergency committee of 16 experts in Geneva on Thursday to assess whether recent outbreaks of the new coronavirus in China and surrounding countries constituted a “public health emergency of international concern”. After the meeting, the organization’s director-general said it was premature to characterize the new coronavirus outbreak as a “public health emergency of international concern.” He said the new coronavirus outbreak in China was urgent but did not constitute a “public health emergency” worldwide.
The director-general also said China’s current measures “could help stop the spread of the disease,” according to Reuters. Speaking at a press conference after the meeting, Mr. Tandsai said he hoped the restrictions in Wuhan and other cities would be “effective” and “completed in a short time”.
Mr. Tandsai said more information was needed before a decision could be made. As a result, the group’s emergency committee will continue to discuss the issue on Friday.
A big concern is that the virus could spread quickly as large Numbers of people travel within and outside China during the Chinese New Year holiday. “It remains to be seen whether China has managed to contain the outbreak, especially as the holidays approach,” said RodrigoCatril, senior currency strategist at National Australia bank.
Worries about the outbreak of the new coronavirus weighed on global markets as Chinese stocks posted their biggest daily drop in more than eight months.
Sentiment for risk assets has fallen, stoking demand for safe-haven assets as investors become increasingly concerned about the new coronavirus outbreak in China and its impact on the global economy.
Spot gold continued to rally on Thursday, successfully closing above the 1560 level and touching a high near $1564. In the early Asian trading on Friday, spot gold continued to trade in a tight range around 1560 and briefly fell below that level.
Jeffrey Sica, founder of Circle Squared Alternative Investments, said: “the coronavirus news is driving people to buy gold because people expect a lot of volatility in the affected economies. This has added a degree of uncertainty to the overall market, prompting people to consider more safe assets in case the outbreak spreads further.”
“The stock market has gone down a bit and that’s generating some interest in gold,” said Bob Haberkorn, senior market strategist at RJO Futures.
Data shockwave hits today
In addition to continuing to track the outbreak of pneumonia in Wuhan, the market also continued to focus on today’s series of European and American PMI data.
Markets are focused on the latest economic sentiment in Europe and the United States. France, Germany, the eurozone and the UK will release their preliminary manufacturing and services PMI’s between 16:00 and 17:30 Beijing time on Friday, followed by the US Markit manufacturing and services PMI’s for January at 22:45 Beijing time on Friday. Watch for further signs of stabilization in the global economy.
According to IHS Markit, “the eurozone manufacturing purchasing managers’ index (PMI) was just 45.9 in December, marking the 11th consecutive month of decline, indicating that the region’s economy is facing a severe underpowered situation.”
In its latest global economic outlook, the world bank again cut its forecast for the euro zone’s growth to 1.1% in 2019 and 1.0% in 2020, down from 1.2% and 1.4% previously. The report pointed out that due to the deteriorating global economic environment and other factors, the euro zone’s manufacturing performance continues to be weak, the overall economic activity is seriously underpowered, and some member economies are even on the verge of recession.
Analysts believe that the economic slowdown may become a long-term trend for the eurozone. If the eurozone economy is stuck in a situation of low growth and low inflation for a long time, the crisis in the manufacturing sector will spread further to the service sector and other sectors, affecting consumption, investment, and other aspects, resulting in a vicious circle of the economy. At the same time, a prolonged period of low-interest rates will have a negative impact on the health of the euro zone’s financial system.
On Thursday, the European central bank left its policy rate unchanged and launched a comprehensive review of its policies, as regional inflation has remained below the central bank’s target of close to 2 percent despite aggressive stimulus measures.
Later, European central bank President Christine Lagarde delivered a dovish speech at a news conference, saying monetary policy must remain highly accommodative for a long time.
Natascha Gewaltig, head of European economics at Action Economics, said in a note: “the ECB left policy and guidance unchanged at today’s meeting, still saying the overall situation justifies a negative interest rate environment and still stressing its readiness to adjust all measures if necessary, with risks still tilted downward.”