Market Recap – Coronavirus Impact

US is pressuring UK to change its decision on Huawei, regarding UK’s 5G mobile network. Today, Mick Mulvaney, Trump’s chief of staff, is meeting Dominic Cummings, the chief special adviser of Boris Johnson. The US message is that any nation who chooses to use an untrustworthy 5G vendor will jeopardize its ability to share intelligence and information with the USA, at the highest level.

Michael Bloomberg will participate at his first Democratic primary debate against five other candidates. Recently it has been reported that we was spending millions on social media, to boost his candidacy.

Market participants continue being concerned/overwhelmed by the potential impact of the coronavirus outbreak. An analysis went viral yesterday suggesting that if China’s GDP drops to 5.3%, one third of Chinese major Banks (9out of 30) will be faced with capital requirement issues. The scenario becomes worse, with 17 out of 30 banks facing capital requirement issues, if the GDP drops to 4.15%. OPEC was already expecting a 5.4% Chinese growth at its monthly report, published last week.

Macro releases:  Yesterday’s ZEW Economic Sentiment was disappointing. Today’s economic calendar includes the British and Canadian inflation readings, and a health check of US housing market.

CopyTrade at ZuluTrade


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