penny stocks news

Stock markets are mixed once again this morning. They’re having a hard time deciding whether to trade higher on earnings optimism or sell-off on coronavirus fears. both Amazon and IBM have come out with big news over the last 24 hours.

AMZN posted blowout earnings and IBM saw the departure of its CEO. In China, most factories are expected to remain closed due to coronavirus. The angle there is to curb the spread of the virus further than it’s gone already.

Such a decision will obviously have an impact on supply and demand across global economies. Furthermore, the Eurozone saw its slowest GDP growth in the last 5 years. France and Italy contracted further. On another front, we’ve still got the highly publicized U.S. Presidential Impeachment trial going on today. The hope of President Trump is that it comes to a speedy end in his favor.

Stocks Mixed Ahead Of Friday’s Session

Stocks are set to open mixed for Friday’s session. Weak economic data out of the Eurozone could have been the initial catalyst with coronavirus fears quickly behind it. Yesterday the market saw a strong push during power hour to close near its high of the day.

This came even as the World Health Organization declared the coronavirus a global health emergency. However, to many people’s surprise, the WHO didn’t recommend any travel restrictions or further guidance to avoid exposure in line with a global health crisis.

“The Committee does not recommend any travel or trade restriction based on the current information available.”

World Health Organization Statement, January 30, 2020

Some say that this doesn’t make sense based on the current state of things. However, as confirmed cases continue to rise and the death toll follows, could the sentiment adjust?

China Poses Potential For Global Disruption

Obviously, as one of the global superpowers for the economy, a full-on shutdown could become a huge disruptor. The confirmed cases of coronavirus have increased to nearly 10,000 with 213 deaths so far. That’s what has been reported by officials. Needless to say, whether or not this is worse than the SARS outbreak doesn’t mean much as manufacturing is expected to pause next week.

Not only could this impact companies with operations in China, but it can also create a very serious situation for global economics. Conservative estimates from banks like Goldman Sachs suggest that this move may take way roughly 0.4% from China’s GDP growth this year. Accounting for next week, China’s industrial hotbed will remain closed for 2 full weeks.

Stock Market Today: Impeachment & Eurozone

President Donal Trump is trying to wrap up the Impeachment. One of the main Republican Senators indicated a vote against allowing new witnesses. Lamar Alexander from Tennessee tweeted that he accepted Democrats’ statements that Trump pressured the Ukranian President, he didn’t find “sufficient ground” for impeachment.

This makes it almost 100% unlikely that former National Security Advisor, John Bolton will testify. That is even in light that he could have increased pressure on Republicans to vote for impeachment. This comes as the Eurozone sees a slowdown in growth and mark Brexit day.

The economy grew at its slowest rate since 2014. Both the Italian and French economies consolidated further. German retail sales also saw a surprise drop in retail sales with Eurozone inflation dropping in January. On the other hand, the U.K. saw mortgage lending increase at its highest rate since its push for a Brexit.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

What’s Next For The Real Estate Industry?

The coronavirus economic shock has left some questioning the stock market. But…

International Land Alliance (ILAL) Announces Affordable Option at Bajamar

SAN DIEGO, CALIFORNIA, April 27, 2020 (GLOBE NEWSWIRE) — International Land Alliance,…

International Land Alliance Announces Joint Venture to Develop 150 Homes at Bajamar

SAN DIEGO, March 25, 2020 /PRNewswire/ — International Land Alliance, Inc. (OTCQB:…