According to the latest data from the national health and construction commission on Monday (February 17), there were 2,048 new cases, 70,548 in total, and 1,770 deaths. The mood was cautiously upbeat, the dollar remained strong, spot gold continued to hover above 1580, and the market continued to watch for the impact of the outbreak, especially if there was any news on the spread of the disease in other countries.
Latest data: the total number of confirmed cases across the country has broken 70,000! A total of 10,000 cases were discharged from the hospital.
A total of 2,048 new cases, 105 new deaths (100 in hubei, 3 in henan and 2 in guangdong) and 1,563 new suspected cases were reported in 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps from 0:00 to 24:00 on February 16, according to the national health and construction commission.
On the same day, 1425 new cases were cured and discharged from hospital, 28,179 close contacts were released from medical observation, and 628 cases of severe illness were reduced.
The central bank stepped in again
In addition to the bright spots in the data, the people’s Bank of China stepped in again today to free up liquidity. On Monday, the people’s Bank of China launched a one-year medium-term lending facility (MLF) of 200 billion yuan, cutting the interest rate to 3.15% from 3.25%.
Affected by this, A shares opened higher, the current gem up more than 2%, the Shenzhen component index up more than 1%, the Shanghai composite index up 1%.
In currency markets, the dollar continued to hold firm at high levels and is now trading above the 99 marks, not far from its previous four-month high of 99.19. But U.S. markets will be closed Monday for the President’s day holiday.
The stronger U.S. economic outlook supported the dollar, which also benefited from a popular trade in which investors borrowed euros to invest in higher-yielding U.S. assets, analysts said.
But Cleveland fed President James Meester said Friday that the new coronavirus outbreak could drag down the U.S. economy this quarter.
“I expect, without a doubt, China and perhaps Asia will be weaker in the first quarter,” Meester said in an interview. The U.S. economy could also take a hit in the first quarter, though the extent and duration of the impact remain to be seen. But overall, I think it’s a risk to my estimates — I haven’t lowered my estimates yet.”
Spot gold continued to trade in a tight range above 1580 on the back of steady dollar highs, briefly hitting $1580 on the back of a modest recovery in risk sentiment.
George Gero, managing director of wealth management at royal bank of Canada, said: “the coronavirus outbreak remains unclear and reports of the virus have caused volatility in equity markets, forcing investors to turn to gold as a safe haven. Even if the virus goes away, gold is still expected to fluctuate between $1,550 and $1,600 as other uncertainties remain, such as interest rate cuts by major central Banks, tensions in the Middle East and other political risks.”