|Day's range||1.4390 - 1.4920|
|52-week range||1.4290 - 2.7590|
The earnings impact from the coronavirus is likely to be short lived, according to Kauffman who believes upbeat corporate earnings, low interest rates and U.S. economic strength are reasons to overlook any short-term market impact from the virus.
Stocks fell and bond prices rose sharply on Wall Street Friday amid signs that economic fallout from the viral outbreak that originated in China is hurting U.S. companies. The yield on the 30-year Treasury reached a record low as investors sought the safety of U.S. government bonds. New data showing manufacturing and business activity suddenly slowed this month stoked investors' anxiety over the outbreak’s impact on company profits.
It was a Risk-off Thursday, with the S&P500; down 0.5% heading into the close and Europe’s Stoxx600 closed 0.9% lower. US 10y yields slipped 5bps to 1.52%, levels not seen since early February.
U.S. mortgage rates rose slightly this week but they remain far below year-ago levels, which has provided a boost to home sales. Mortgage buyer Freddie Mac said Thursday that the average rate for a 30-year fixed-rate mortgage loan rose to 3.49% from 3.47% last week. Fears about the economic impact of China's viral outbreak have caused investors to snap up U.S. Treasury securities, often seen as a safe haven in the event of an economic downturn.
A rally in China’s government bonds prompted by the deadly coronavirus outbreak has rewarded big US and European investors that have bet on a slowdown in the world’s second-biggest economy. China’s 10-year Treasury yields, which fall as prices rise, have sunk more than 25 basis points to 2.87 per cent since the start of the year.
The Federal Reserve is likely to keep interest rates where they are until mid-2020 but may need to cut them, Minneapolis Fed Bank President Neel Kashkari said.
Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity.
More stimulus from the central banks is likely to provide longer-term support for gold prices, but over the short-run, gold is likely to be underpinned the most by falling Treasury yields and lower demand for risky assets.
The Dollar/Yen is trading lower as concerns over the impact of the coronavirus on China’s economy and the global supply chain are driving investors to seek protection in the Japanese Yen. There wasn’t any fresh economic data released on Tuesday, but a production warning from Apple highlighted the mounting economic costs of the coronavirus and spooked global stock market investors. At 10:54 GMT, the USD/JPY is trading 109.720, down 0.169 or -0.16%.
“The real question for the Fed is: What is the likely effect on the U.S. economy? And I think we’ll begin to see that in economic data coming up fairly soon.
The Hubei Coronavirus update headline has initially hit like a ton of bricks given this is one of the market’s biggest fears.
Stocks closed broadly higher on Wall Street Wednesday, driving the S&P 500 and Nasdaq indexes to more record highs. Technology stocks powered much of the rally as investors focused on the latest batch of mostly solid company earnings reports. The latest gains came as worries about the economic impact of the virus outbreak that originated in China continued to subside.
President Donald Trump’s persistent calls for the Federal Reserve to lower interest rates are an effort to juice the economy and stock market ahead of the 2020 U.S. presidential elections, according to at least one strategist.
It was another good day for global equities, which saw the S&P500; up 0.2% to notch a fresh record high.
The Australian Dollar plummeted last week, falling in sympathy with the Chinese Yuan as investors fretted about the hit to the Chinese economy from the coronavirus.
Stock markets turned lower again on Friday after world health authorities declared the virus pandemic that has spread from China to more than a dozen countries a global emergency. Britain's FTSE 100 lost 0.7% to 7,334 as the midnight departure of the U.K. from the European Union loomed. For much of the world, the main focus was on the ripple effects of the outbreak of a virus first found in central China that has killed at least 213 and sickened nearly 9,700.
I was expecting Fed policymakers to hold rates steady, but was rather surprised by their comments about household spending.