Markets Rebound, Wuhan Virus Spreads, Earnings Season Hits High Gear

The global markets are mixed, the focus is on the spreading coronavirus and its impact on economic activity.
Thomas Hughes
Corona Virus

The U.S. Futures Are Up In Early Tuesday Trading

The U.S. futures market is indicating a slightly higher open for the market on Tuesday. The tech-heavy NASDAQ Composite is in the lead with a gain of 0.45% but I wouldn’t trust it. New from China is the Wuhan Virus continues to spread. There are now more than 4500 infected and 106 dead. With cases in Japan, Southeast Asia, Korea, Australia, the EU, and the US it is certain both the number of infected and dead will rise.  The S&P 500 and Dow Jones Industrial Average are both up about 0.25%.

In stock news, reports from major S&P 500 companies are coming in fast and furious. This is the busiest week of the season, there are 147 S&P companies and 14 Dow Components. Shares of Pfizer, 3M and Harley Davidson are all moving lower after missing their consensus estimates or offering weak guidance. Harley Davidson is in the lead as weak sales in the U.S. dragged on results.

In economic news, durable goods orders came in well above expectation but there is a catch. The 2.4% headline figure beats the -0.2% expected but is up mostly only transportation-related spending. Ex-item’s, core business-spending is down -0.1%. Later in the session traders will be on the lookout for Consumer Confidence.

European Markets Up, Brexit Is In Sight (Almost)

The European markets are cautiously higher at midday on Tuesday. The CAC and FTSE are both up about 0.50% while the DAX lags with a gain of 0.40%. Telecoms are among the day’s biggest gainers with average advances of 0.80%. Tech is among today’s hardest hit with losses in the range of -1.10%.

In earnings news, shares of SAP and Burberry are trading lower after disappointing investors. SAP raised its revenue and earnings guidance but not enough to meet expectations and shares fell -2.7%. Burberry lost -3.5% on concerns of its exposure to Asia and the coronavirus.

In politics, the long-awaited Brexit is slated to occur on Friday. This is the first of two Brexit’s and paves the way to final negotiations. The UK is pushing for a free or near-free market environment while the EU negotiator says it won’t happen. According to him, the UK has underestimated the EU in that regard.

Asian Markets Falter As Virus Outbreak Spreads

Asian markets moved lower on Tuesday after the news China’s death count had risen. The South Korean Kospi, closed Monday for holiday, fell more than -3.0% while others shed less robust amounts. Japan’s Nikkei fell -0.55% while the Australian ASX fell -1.35%. Traders in Australia are worried about the impact to tourism markets, China is Australia’s #1 tourist market and traveling has been severely curtailed. Markets in China and Hong Kong remained closed for Lunar New Year.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.