Naeem Aslam
Zaye Capital Markets
European markets have set aside some of the concerns about Coronavirus. Speculators are back in town and ready to support the markets. For them, the current sell-off is an opportunity. Having said this, the theme isn’t the same across global markets as they are still under the influence of this virus.
Asian markets suffered heavy losses as the efforts continued to curb the spread of Coronavirus. Investors are not sure how to measure the economic damage of this virus, and this very fact makes them nervous. The fear of unknown pushed the Japnese equity markets towards their worst two days losses—something which we have not seen since August last year.
Looking at the global markets and risk sentiment, we do not think that investors are going to be fully in love with riskier assets until or unless we hear the news that the virus situation has improved. This is the reason the volatility index, the VIX, has jumped beyond its one year average while the equity indices tumbled. The one year average for the index sits at 14.94 while it closed at 18.23 yesterday.
Apple: Watch The After Hour Liquidity
As for the earning season, Apple’s earnings report has the potential to set off plenty of market volatility. The tech giant is expected to report its’ earnings after the US market. Apple plans to increase its iPhone output by 10% during the first half of 2020 or in other words, by 80 million units. Investors are going to focus on their webcast carefully and they will guage the disruption caused due to the Coronavirus. This is because all iPhones are produced in China. If the company confirms that the current situation is nothing but a short term hurdle then the market participants are going to take that as a sign of confidence.
Investors should keep in mind that liquidity isn’t abundant during the after-hour trading and anything which comes out of blue, like the revenue warning by Apple in 2019, it could inspire a flash crash.
The information is purely for education purposes only and cannot be perceived as an advise.
Recommended Content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.