Home Forex News China’s Economic Impact and Anxiety on Coronavirus Hits Asian Trading

China’s Economic Impact and Anxiety on Coronavirus Hits Asian Trading

As per the latest Asian trading update, the traders are shifting their high-risk investments to low-risk investments with full steam for the growing anxiety over China’s swiftly spreading Coronavirus and its effect on the Chinese economy.

On Wednesday, investors had expressed their concerns over China’s Coronavirus impending economic impact on hold and supported the upbeat US and Australian markets. Besides, the Asian stocks tracked Wall Street rebounded overnight, which was driven by Apple Inc’s earnings.

While re-assessing the situation on the economic impact on the Coronavirus, the death toll in China has raised to 130+ and about 6000 confirmed cases of this outbreak. After returning from the lunar New Year holiday, Hong Kong Markets fell steeply to 2.5% on China’s Coronavirus anxiety.

China’s National Health Commission (NHC) remarked that the country’s Coronavirus death toll reached 170, at the same time, the number of infected victims increased to 7,711. Moreover, Japan, the US, New Zealand, Singapore, and Taiwan removed their nationals from Wuhan and quarantined them.

Investors expressed their concerns over the US Federal Reserve’s (Fed) over the US economic outlook, despite the increasing pressure in China. The stocks which were traded in Asia accumulated substantial loss, which was followed by a 5 percent sell-off in Taiwan stocks.

In the middle of increasing risks, yields on a ten year US treasuries benchmark had a direct hit of a new three month low of 1.5600 percent and while towards the close of the session, S&P 500 futures dropped to 0.60 percent. Additionally, oil prices dropped to nearly 1 percent over the downward economic trend, as the outbreak played a very significant role in the oil demand growth prospective.

Nevertheless, EUR/USD and cable traded relatively flat by keeping its current trading range ahead of the German macro releases and the base rate decision of Bank of England (BOE), which is due later Thursday.

Taking into account the encouraging US macro data, China Coronavirus outbreak and its impact on the US-China phase one trade deal, the Fed chair Powell’s economic outlook for the first six months will be closely scrutinized.

Timmy Murphy
Timmy is a crypto and finance analyst. He deals with finance news-stories. He has completed his graduation in accounting and Finance. He is also a blogger and is famous for his finance blog. For any issues, feel free to contact him at email: timmy@forexnews.world

Must Read

Buterin Reveals How He Burned Almost $7B Worth of Shiba Inu (SHIB)

Vitalik Buterin, a Co-Founder of Ethereum, spoke to the UpOnly podcast. He admitted to burning Shiba Inu tokens worth $7 billion. Vitalik Buterin burned...

Microstrategy CEO Won’t Sell $5 Billion in BTC Despite Crypto Winter

Despite the fact that the value of Bitcoin (BTC) has dropped by 40%, MicroStrategy's Michael Saylor has no plans to sell his $5 billion...

Ethereum Has One Obstacle to Fresh Highs, According to On-Chain Data

Ethereum is undoubtedly a big name in decentralized finance with a volume cap of nearly 400 billion dollars. The coin entered 2022 with the...

How to Buy Vechain and How It Works?: Beginner’s Guide

What Is Vechain? VeChain is a blockchain for businesses that aims to build "a trust-free and distributed business environment to enable transparent information flow, efficient...

Nevermind The Ripple Lawsuit: Digivault Becomes First Accredited Custodian To Support XRP

The year 2021 can barely be described for Cryptocurrency in words. The value undoubtedly increased compared to the previous three years, but it ended...