In the early hours of Tuesday (11 February), the latest news on the outbreak of the new coronary pneumonia reached 2,478 new cases nationwide, with a total of 42,638 confirmed cases and 1,016 deaths. In addition, the party chief and director of the Hubei provincial health and fitness commission were both dismissed, CCTV news reported. Investors will continue to keep an eye on developments and related news in China on Tuesday, and U.S. federal reserve chairman colin Powell’s testimony to congress tonight on the semiannual monetary policy report is expected to trigger market volatility. Analysts said investors will be watching to see if Mr. Powell gives any clues about future policy.
According to the hubei health and fitness commission, from 0:00 to 24:00 on February 10, 2020, there were 2,097 new cases of coronary pneumonia and 103 new deaths in hubei. By 24:00 on February 10, 2020, a total of 31,728 cases of new coronary pneumonia had been reported in hubei province, and 2,222 cases had been cured and discharged from the hospital. A total of 974 cases died, with a case fatality rate of 3.07%. At present, 25087 cases are still being treated in hospital, including 5046 cases of severe cases and 1298 cases of critical cases, all of which are receiving isolation treatment in designated medical institutions. A total of 144,279 people with close contacts were followed up and 76,207 people were still under medical observation.
It is worth noting that the total number of confirmed cases in hubei cities and cities outside wuhan has decreased for 6 consecutive days.
On February 10, the standing committee of the hubei provincial party committee decided to remove zhang jin as party secretary of the provincial health committee, according to the latest report by CCTV news on Tuesday. Liu yingzi was relieved from the post of director of the provincial health commission; The two positions mentioned above shall be held concurrently by the newly appointed member of the standing committee of the provincial party committee, comrade wang hesheng.
Powell’s speech hit hard
Fed chairman colin Powell will testify before the house financial services committee on the semiannual monetary policy report at 23:00 Beijing time on Tuesday. The market will be looking closely for any clues it may reveal about the fed’s future policy path.
The fed signaled after its last meeting that it would pause for the foreseeable future, but markets have begun to expect at least one rate cut this year as concerns about global growth have returned.
In its semi-annual report to congress, the fed said the outbreak of the new coronavirus posed “new risks” to the US economic outlook and warned that global markets would be disrupted. In addition, democratic senators have written to colin Powell seeking an explanation for the fed’s massive repo market operation to calm the money market stresses that erupted in September.
The latest data show that the fed continued to pump liquidity into the market well into February, almost six months after last September’s liquidity crisis. On February 4, the US federal reserve injected a huge amount of liquidity of us $64.45 billion into the market through an overnight repo and a total of us $94.45 billion into the market on the same day with the US $30 billion regular repo program.
After last week’s nonfarm data, fed funds futures expiring in January 2021 implied a modest cut to 1.255 percent by the end of 2020. At the effective federal funds rate of about 1.59 percent, the market is pricing in a cut of about 33.5 basis points this year, and fed funds futures are fully pricing in a 25 basis point cut by October.
Analysts say fed chairman colin Powell’s congressional testimony will focus on the impact of the new coronavirus, which the fed has identified as a “new threat” to economic growth.
In its semi-annual monetary policy report on Friday, the fed noted that the likelihood of a recession next year had declined significantly in recent months as trade tensions eased, financial conditions eased and global growth stabilized, but the virus posed a new threat.
US President Donald Trump said in early Asian trading on Tuesday that 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.