(13 February 2020)DAILY MARKET BRIEF 1:US stocks renew record, but Asia sells on mixed coronavirus news.
US equities advanced to record highs yet another day on news that the rate of the coronavirus infection may be slowing and that the outbreak may not hit the US businesses as hard as first thought. Though the Federal Reserve (Fed) Chair Jay Powell reiterated that they are monitoring the downside risks of the coronavirus on the economy and stand ready to deploy further support measures if needed.
Asian equity markets fell out of the race however, as news in Asia were not quite the same. It appeared that the number of coronavirus infections didn’t decelerate but jumped instead after the method for diagnosis was revisited. Top officials at the helm of Hubei and Wuhan provinces were removed from their position.
US stock futures suffered losses in the overnight trading session.
Activity in FTSE (-0.19%) and DAX (-0.32%) futures point at a negative start in Europe as well.
The US 10-year yield slipped below the 1.60% mark, and the US dollar index advanced above the 99-mark supported by flight to safety.
By Ipek Ozkardeskaya
