Markets opened lower in Europe on Monday, following the trend set by most Asian benchmarks while US futures are pointing to a steady open after last Friday’s end-of-session decline. Market sentiment remains weak today, despite a Chinese CPI release topping estimates earlier this morning, as investors prefer to stay cautious after the latest development on the coronavirus. The death toll has now hit 910 while the number of people infected topped 40,000 during the weekend with more and more cases registered outside mainland China and still no sign of a peak. This situation starts to have a serious impact on investors’ trading stance as the negative consequences to worldwide economies may linger further into Q2 if the virus continues to spread.
Chances of an extended rally on safe havens like gold, silver, CHF, JPY and other alternative assets such as cryptocurrencies are likely as traders may prefer to diversify their exposure to fight against the current uncertainty while central banks from emerging markets have already taken measures to insure certain liquidity levels this week in order to reassure investors. Travel and media shares are currently driving the Stoxx-600 Index lower in Europe with the DAX-30 index the worst performer so far. In the meantime, investors will focus on a new batch of corporate earnings with Cisco Systems today and Alibaba, Credit Suisse and Nestle later this week.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.