After the frenzied selloff of US stocks Monday investors seem to have worked off some of the panic over the coronavirus and this morning markets in Europe, though still weaker, are trading in a much calmer fashion. More importantly, all three key US stock futures are higher indicating that Wall Street could have a much better open today.
The FTSE is also a little bit firmer, with office supplies firm Bunzl topping the gainers’ table thanks to the strong annual profits it released yesterday.
Japan turns critical
Despite this morning’s breather markets remain vulnerable as the number of cases outside of China continues to grow fast. South Korea went from having about 230 cases this weekend to 977 cases while Japan warned that the spread of the virus is now on the cusp of rapid spread.
Euro dips on German economic growth
German GDP data did not bring much by way of a surprise: economic growth in Europe’s largest economy remained flat on the quarter and grew by only 0.4% on the year. Struggling with weaker demand for its exports in Asia, tariffs on its car exports to the US and the effects of Brexit Germany is now also facing weaker domestic consumption.
The euro just about held its ground against the dollar after the data but was sliding against the pound despite sterling being under some pressure over unresolved trade issues with Europe.
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