Global financial markets closed last week in the doldrums amid a fast-spreading coronavirus beyond China. The news released on Monday is far from optimistic, though it could be worse.
Markets are encouraged that no new sources of the inflation have been discovered. The other good news is that the epidemic is spreading at a slower rate with fewer people infected.
The major epicenter remains mainland China with 80,000 cases since the outbreak in December. The total number of confirmed cases equals 88,000 around the world. Obviously, China accounts for 90% of the total cases. At the same time, the epidemic in China is now spreading at a rate of 400-500 new cases per day.
The second biggest outbreak outside China is South Korea with 3,700 cases. In Europe, Italy has logged the largest number of cases that is 1,700. The worst situation in the Middle East is detected in Iran with 1,000 cases. The epidemic there is hard to stamp out due to problems with the healthcare personnel and lack of medicines. Japan reported nearly 1,000 cases, 700 of them were diagnosed among passengers on the cruise ship which has been in quarantine.
To sum it up, the situation looks complicated, though it has been under control.
Market participants have been making efforts to fix the downturn. Chinese stock indices have recovered 38% during the Asian trade today. Futures on US stock indices have been on the rise. Crude oil have rebounded almost 3 US dollars.
EUR/USD has climbed notably as the euro has been advancing for the whole last week. The currency pair reversed its downtrend. However, it is still premature to make the bullish forecast.
EUR/USD could rise as high as 1.1100, though the pair could reach a lower level by Tuesday.
