China has confirmed 2,478 new cases, with a total of 42,638 confirmed cases, 3,996 discharged from hospitals and 1,016 deaths, according to the latest data from the national health and construction commission. It is worth mentioning that the number of new confirmed cases fell for the seventh consecutive day in China except for hubei. With Chinese factories slowly returning to work, the mood is cautiously optimistic. The dollar continued to rally strongly, while spot gold held firm and markets focused on a speech by federal reserve chairman colin Powell late in the day.
Concerns about the outbreak have unnerved market participants, with the death toll across the country now exceeding 1,000 — more than during the SARS outbreak in 2002-03 — and affecting a wide range of companies and industries.
WeiJianWei 11, the latest report according to the country, on February 10, 0 to 24, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps report, new confirmed cases, 2478 cases (2097 cases) of hubei province, and severe cases 849 cases (839 cases) of hubei province, the new death cases, 108 cases (103 cases of hubei, Beijing, tianjin, heilongjiang, anhui, henan 1 case), the new suspected cases 3536 cases (1814 cases) of hubei province.
A total of 716 newly cured and discharged cases (427 in hubei) were reported, and 26,724 close contacts were released from medical observation.
U.S. stocks rose overnight, with the s&p 500 and NASDAQ closing at record highs, as markets reacted to the slow return of Chinese workers and factories to work and production on Monday after the Chinese New Year holiday was extended by an outbreak of the new coronet virus.
Zhang jin and liu yingzi were removed from their posts as party secretary and director of the health and fitness commission of hubei province on February 10, and wang hesheng, a member of the standing committee of the provincial party committee, held both posts, CCTV news reported. Tang zhihong, director of the huanggang health commission, was also dismissed. Before tang zhihong in the face of the central inspection team check, once asked three knows.
Asian shares were among the more upbeat on Monday after Japan’s stock market was closed for the anniversary of the founding of the People’s Republic of China.
“We are seeing positive news from some of the big companies reporting they are going back to work in China,” said Richard Franulovich, head of foreign exchange strategy at Westpac bank in Sydney.
In currency markets, the dollar continued to strengthen, with the U.S. index touching 98.89 overnight after trading around 98.85 in early Asian trading on Tuesday as investors looked to the U.S. economy to remain resilient amid the spread of the new coronavirus, while last week’s U.S. non-farm payrolls data reinforced traders’ optimism.
Lee Hardman, the currency analyst at MUFG, said: “concerns about growth prospects outside the US, the increased likelihood of President Trump winning a second term and more evidence of us economic resilience have added to the dollar’s relative attractiveness in the short term. However, the fed’s reluctance to tighten policy should help limit the upside potential for Treasury yields and the dollar.”
Win Thin, global head of currency strategy at Brown Brothers Harriman, said: “the US data was much stronger than expected and the eurozone data was much weaker than expected. There was safe-haven buying in the market because of the coronavirus outbreak. That’s bad for emerging markets, good for the dollar, good for the yen and good for the Swiss franc.”
While the dollar remained strong, spot gold remained firm, closing above the 1570 mark overnight and continuing to hover near that level in Asian trading on Tuesday.
“Concerns about the outbreak continue to drive safe-haven flows into gold, which is positive for gold prices,” said Daniel Ghali, commodities strategist at TD securities. At the same time, trading is crowded, which means gains tend to be limited as people take advantage of the opportunity to take profits.”
On the technical front, ActivTrades chief analyst Carlo Alberto DE Casa said in a note, “gold is currently facing resistance at $1,575 an ounce, and a clear break above that level could open the way for further gains, starting with a $1,600 target.”
Focus on Powell speech and trump pressure!
In the session, investors will focus on federal reserve chairman colin Powell’s testimony to the House financial services committee on Tuesday. Later tomorrow night, at the same time, he will testify before the Senate banking committee on the semi-annual monetary policy report.
Fed chairman Colin Powell testified before the house financial services committee at 23:00 Beijing time on Tuesday on the semiannual monetary policy report.
The move follows renewed pressure from US President Donald Trump, who on Tuesday reportedly said he was “disappointed” by federal reserve chairman Colin Powell. Mr. Trump has complained that the fed is raising rates too fast and cutting them too slowly.
In addition, according to China Daily, US President Donald Trump recently told fox business channel, “China has done a very professional job, and I do believe they will get it under control soon.” Trump added, “we’re working with them.”
As well as continuing to watch Mr. Powell for future currency adjustments, the market is also watching what he says about the outbreak.
Mary Ann Hurley, vice president of fixed-income trading at D.A. Davidson, said the market was driven by “concerns that the coronavirus shows no signs of abating,” which would have a major impact on global growth and could be a turning point that pushed the economy into recession. I think [Powell] may be asked to comment more on the potential impact of the new coronavirus and how the fed will respond.”
In its semi-annual monetary policy report to Congress on Friday, the federal reserve said the outbreak of the new coronavirus posed “new risks” to the US and global economic outlook, warning that global markets would be affected.
Fed watchers said Powell was unlikely to spell out the fed’s intentions but was unlikely to ignore the threat or rule out any response.
Michael Feroli, a former fed researcher who is now chief us economist at JPMorgan chase, said: “it’s unlikely to convey confidence. At least when I was at the fed, there were no virologists on the committee.”
Philadelphia fed President Richard Harker said Monday the fed was monitoring the impact of the new outbreak but added there was not much it could do.
Harker told a conference at the University of Delaware that the fed’s rate-cutting tool is unlikely to significantly ease the situation for companies whose supply chains have been disrupted by epidure-related shutdowns. But, he added, “if things get significantly worse and we start to see a significant impact on the US economy, then we need to consider adaptive policies. But I don’t think it’s there yet.”