China’s outbreak of coronavirus has been weighing on the risk-tone off-late. While the internal death toll due to the humanly transmitted virus has officially reached 17, an increase in the registered cases from Japan and Sydney also negatively affects the market’s trade sentiment.
Read: Latest on coronavirus: Beijing cancels Chinese New Year temple fairs, suspected case in Scotland
With this, the US 10-year treasury yields stay on the back foot around 1.74% whereas S&P 500 Futures also cut the early-Asia gains to 3,328. Further, prices of gold, currently around $1,563, as well as USD/JPY, close to 109.60, are also affected due to the risk aversion wave.
Some of the latest news concerning the virus outbreak:
- Australian Health authorities have confirmed a person in Sydney is in quarantine after possibly contracting coronavirus.
- Japan’s Health Ministry confirms the second case of a Chinese national living in the Asian country.
- Sources: Wuhan medical staff being infected at a faster pace than reported – South China Morning Post (SCMP)
FX implications
While news like these keep weighing on the risk-tone, safe-havens are likely catching a breath amid the Asian session.
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