Just the slightest hint of positive news is all it takes to push markets up, especially in the U.S.
Global growth worries?
For all the understandable worries about the impact of the coronavirus – global growth outlook has been improving, monetary policies remain fluid and the U.S. earnings season, so far, has produced mainly positive results.
As markets recovered losses from the fall on Friday and then stabilised – the coronavirus related vaccine news and details of new drug treatments triggered another upward lurch across global markets, highlighting the low bar for optimism in this ‘never ending’ bull market.
Positive earnings reported…
Earnings have helped, with fourth-quarter results so far better than expected (this seems to be regularly the case).
Warning
As reports of the outbreak continues to gain attention, more company warnings are becoming much louder. Sportswear companies; Adidas and Nike are reported to have closed a large number of stores in China. Apples production partner Foxconn is reported to have also announced plans to isolate staff at its main iPhone manufacturing facility.
Shutting shop
This comes on top of previous reports of companies shutting shop in China such as Starbucks, McDonald’s, Ikea, Google, Microsoft and Toyota, to name just a few.
Markets, especially in the U.S., have shown remarkable resilience in recent months, and are now batting away fears of the coronavirus outbreak too.
How much longer can the U.S. bull keep running? Is the mighty bear soon to awake?
Coronavirus affecting global trade
World Health Organisation (WHO) declares the coronavirus a public emergency
Just a few short days ago reports were suggesting that two thirds of China was ‘shutting down’.
Latest
The World Health Organsations (WHO) – asks the world for funds – (half a billion dollars) – to aid the fight against the coronavirus now, or face a bigger problem later!