It’s deja vu all over again!
Last year, global financial markets fluctuated based on the U.S.-China trade negotiations. One day, a deal was imminent – equities soared. The next day, a deal was off the table – equities cratered. It was a seesaw affair.
Well, the same thing is happening again. One day, the coronavirus appears to have stabilized – markets rally. The next day, the coronavirus intensifies on the world stage – markets crash.
On Monday, investors are of the opinion that the coronavirus is spreading to other countries (25 in total) and could worsen and impact global supply chains. So, as a result, North American, European, and Asian stocks are plummeting.
Here is what American traders are seeing right now:
As a result, traders diving into safe-haven assets, including gold. The yellow metal is on the cusp of breaking through an eight-year high of $1,700.
Who knows what tomorrow will bring?
Considering the Federal Reserve is still pumping money and markets are penciling in a cut to interest rates this spring, the U.S. economy will likely weather the storm.
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