Let’s check changes in the market. At the end of Monday, the death toll in China rose to 425. The infection has now infected more than 20,000. Ei Kaku is a currency strategist at Nomura. He said that all in all, the epidemic is not necessarily harmful to the yuan’s supply-demand balance.
The Reserve Bank of Australia, says that it is too early to determine how long-lasting the impact of the virus will be.
Ayako Sera is the market economist at Sumitomo Mitsui Trust Bank. He says that the question is how long it will take containing the epidemic. Many people are selling risk assets; meanwhile, there are also lots of people who look for a change for bargain-hunt.
The market economist at Sumitomo Mitsui Trust Bank adds that if they start to see a decline in the number of news cases, then it might be the end. Nevertheless, it will be hard to say when it will happen.
He also said that China’s bulk service account deficit is coming from Chinese travel spending overseas. It looks set to shrink for now. Yesterday we also saw fund inflows to stocks of China. Thus, there is no sign yet of capital flight either.
Chinese Yuan
The offshore yuan per dollar gained 0.1% to 7.0022 yuan. It was in lines with rebounds of the Chinese holding and shares above its one-month low of 7.0230 per dollar. It hit the number in European trade on Monday.
On Monday, the pound lost 1.54%. It happened because of the renewal of the worries about Britain’s relations with the European Union.
Boris Johnson is the Prime Minister of Britain. He set out the harsh terms for Brexit talks with the European Union. He rekindled gears that Britain would reach the end of an 11-month transition period without agreeing on a trade deal.
In the U.S. state of Iowa, Democrats are kicking off a process to choose a challenger to President Trump. The attention of the traders is now at Iowa.
That is the leading news of the market today.
