Stocks fell as US declares public health emergency - 3.2.2020

Dollar strengthening intact

US stock market pulled back on Friday as President Trump declared a US public health emergency in response to the coronavirus outbreak in China. The S&P 500 fell 1.8% to 3225.52, retreating 2.1% for the week. Dow Jones industrial dropped 2.1% to 28256.03. The Nasdaq lost 1.6% to 9150.94. The dollar weakening accelerated as the 10-year Treasury note yield declined below the 3-month Treasury bill rate, inverting the so-called yield curve. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slid 0.5% to 97.38 but is higher currently. Futures on stock indexes point to higher openings today.

European stock indexes slumped

European stocks extended losses on Friday with weak data offering little support to investor confidence undermined by epidemic fears. Both GBP/USD and EUR/USD accelerated their climbs on Friday with both pairs lower currently. The Stoxx Europe 600 Index lost 1.1% led by mining shares. The DAX 30 fell 1.3% Friday. France’s CAC 40 slumped 1.1% as data revealed a surprise GDP contraction and UK’s FTSE 100 tumbled 1.3% to 7286.01 as United Kingdom official exited from the European Union.

Shanghai Composite drop leads Asian indexes retreat

Asian stock indices are mostly down today. Nikkei fell 1% to 22971.94 despite resumed yen slide against the dollar. China’s markets plunged after reopening following the extended Lunar New Year holiday: the Shanghai Composite Index sank 7.7% while Hong Kong’s Hang Seng Index is up 0.05%. Australia’s All Ordinaries Index tumbled 1.3% with Australian dollar climb against the greenback resuming.

Nikkei falling toward MA(200) 2/3/2020 Market Overview IFC Markets chart

Saudi Aramco slips less than Brent slump

Brent futures prices slide continues today. Prices fell on Friday: Brent for April settlement fell 1.2% to $56.62 a barrel Friday. Saudi Aramco shares are down currently 0.2% to 33.90 riyals as they continue trading on country’s Tadawul exchange. Aramco’s shares lost 3.1% in January. It is much lower than more than 10% drops for major oil producers liked Chevron, Royal Dutch Shell when Brent recorded 12% slump for the month.