Morning Bell 25 February

February 27, 2020 0 By Ewald Bahringer


Good morning well global equities fall
sharply on coronavirus fears with the Dow seeing its biggest loss in two years
while in Italy one of the hardest hit nations outside of Asia with 130 cases saw
its stock market have its biggest slide since 2016 and this sell-off comes as
don’t forget at the weekend the IMF said the global growth would be 0.1% lower this year taking global growth to 3.2 percent in the wake of the
coronavirus and the central bank also shaved down their 2020 forecast for
China growth by 0.4% estimating final growth will stand at 5.6% it’s
still one of the strongest one of the most bullish rates of growth around the
globe but nevertheless despite the downgrade but despite that we’ve seen
money pour into safe havens like gold and bonds which is why we saw the US
10-year bond yield fall to its lowest level since 2016 but we think we should
see government intervention really step in following a China’s economic stimulus
that we saw of late that’s why some analysts are now expecting the US
Federal Reserve will cut rates. Yesterday our market calling out the figures we
closed 2.3% or 161 points lower taking the market under the 7,000 milestone for the first time in three weeks and the futures are
suggesting another round of profit taking today the futures are suggesting
a fall of 2.3% at the open but do bear in mind we heard from the world’s
best investor Warren Buffett at the weekend and he said in times like these
it’s important not to sell down your holdings as particularly those companies
with strong and solid fundamentals should and will ride out the wave and
reporting season is also a time to see who’s looking strong and who’s not we’re
hearing from a lot of companies today including Appen with their calendar
year net profit after tax the markets looking for 65.1 million dollars
we’ve got the stock as a buy Caltex Hub 24 has just reported better than
expected results on face value QUBE Spark also reporting take a look at
markets now the Dow Jones was down it’s taking a heavy hit as we mentioned
earlier the Nasdaq was down the most 3.7% on Wall Street in Europe the German DAX was down the most
a 4% among the majors while the French CAC followed the border stock
600 down the least 3.8% in Asia China’s Shanghai comp
only fell slightly 0.3% holding on to those recent gains and
Hong Kong’s Hang Seng lost almost 2% while the Korean market fell
about 4% as South Korea raised the corona virus alert to its highest
level we saw gold meantime that surged to its highest level since early 2013
hitting US$1,659 great news for how
local gold producers today oil meantime has posted its worst day in a month
losing over 3% it’s now US $51.48 a barrel technically falling into bear
market territory according to some and the iron ore price is last trader or
last traded US $86.40 to Australian dollar holds 11 year lows $66.04 US cents
have a great day and happy trading you