Your Premarket Report For January 24, 2020
This morning we saw U.S. futures climb as stocks jumped in the EU. Investors continue to dissect the latest corporate data from the latest earnings results. Most global stocks traded close to all-time highs as corporate financials topped expectations. However, traders remain aware of the chance that the coronavirus expands.
It hasn’t been that long since things like SARS and MERS broke out on a grand scale. However, it would seem that fears about the coronavirus have been curbed for the time being. That’s despite the woes that oil continues to see as prices continued to drop on Friday.
The purchasing-managers’ report for the U.S. is due out today, which will be in the spotlight. Treasuries held strong after Steven Mnuchin said the plan for “ultra-long” bonds won’t happen in the very near term. In light of this, treasuries have advanced to 1.74%. On the 2-year treasuries, they saw a jump to 1.52%.
Meanwhile, in China, more travel restrictions cover some 40,000,000 citizens. However, the World Health Organization has still not declared a global health emergency. On the market front, Chinese and South Korean markets were closed or the lunar new year holiday.
“Drastic steps, such as city-wide quarantine measures, can be a double-edged sword when it comes to market impact,” ING senior rates strategist Antoine Bouvet wrote in a morning note. “On the one hand they signal the authorities are taking the problem seriously and help containment, on the other hand, they help paint a dramatic picture to investors unfamiliar with dealing with this sort of risk.”
From a commodities angle, things remain steady. Gold still holds a level above $1,550 an ounce. Iron ore traded just north of $90. The biggest focus in commodities right now is oil, which dipped to $55.44 a barrel.