Morning wrap

  • US indices had another strong session yesterday with Dow Jones adding 0.94%, Nasdaq rallying 0.90% and S&P 500 gaining 0.65%. Russell 2000 closed 0.71% higher.

  • Chinese province of Hubei revised reporting guidelines on the confirmed cases. The move caused a jump of 14840 in the number of confirmed cases. Number of deaths climbed to 1369. While the big jump in new cases is worrying, the revision may make the data more actual. Experts from the US are still waiting for China to allow them to join international group that is heading to Wuhan

  • US futures turned lower following revision of reporting methodology in Hubei. Nikkei closed 0.14% lower and the stock index from Shanghai is trading 0.5% lower. However, the Australian S%P/ASX 200 managed to close 0.21% higher.

  • Yen, gold and silver are gaining on an increase in risk aversion. Meanwhile, AUD and NZD are G10 top laggards

  • Jerome Powell said that the Fed may be forced to conduct large-scale asset purchases in case of an economic downturn

  • According to recent reports, Friedrich Merz is seen as a likely candidate to become CDU leader

  • OPEC lowered demand forecast for Q1 2020 by 440,000 barrels a day

  • According to CAAM, China’s car sales dropped 20.2% YoY in January

  • Japan’s PPI inflation accelerated from 0.9% YoY to 1.7% YoY in January

  • Credit Suisse reported quarterly earnings (Q4 2019) that missed net income estimate. However, revenue and pretax income outperformed

  • Airbus reported higher than expected adjusted EBIT and revenue for Q4 2019. The European planemaker booked a €1.2 billion charge on A400M program

WTI (OIL.WTI) rallied 2.5% yesterday ignoring lowering of OPEC demand forecast. However, crude seems to be catching up on news after Hubei’s methodology revision served as a wake up call. Price once again failed to break above the price zone at $52 and may be looking towards a lower limit of the trading range at $50. Source: xStation5

Daily summary: Oil prices highest in 3 weeks
Technical alert: EURUSD
US OPEN: Morgan Stanley announces $13 billion acquisition
BREAKING: Aussie hits the weakest level in 11 years
Economic calendar: ECB minutes among releases to watch
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