The brutality continues for the equity markets, and the U.S. futures are trading sharply lower once again today. Nobody can think of anything but Coronavirus. In Italy, the cases continue to escalate, four hundred and twenty-four people have been infected, and twelve individuals have died. Investors are much concerned about the impact of Coronavirus on global growth. Obviously, with no vaccine at present, traders don’t feel comfortable, and the equity markets will probably remain rattled.
Yesterday, The Dow Jones index suffered its worst two-day sell-off in nearly four years, and sadly, there is still more to come. The Dow Jones index dropped 0.46%, the S&P500 fell 0.38%, but the Russell index closed higher with a gain of 0.17%. The volatility index, VIX closed lower with a loss of 1.04% but remained above the critical level of twenty that stimulates fear in the equity markets.
Yesterday’s session was intriguing because the U.S. equity markets began the day on a positive note; however, optimism faded away as new cases of Coronavirus virus emerged.
The market is sensitive, and everything is headline-driven. Investors continue to weigh their options between risk-on and risk-off assets. Policymakers are still downplaying the risk associated with Coronavirus despite that over 81K people have been infected worldwide, and nearly 27K have died.
Why Gold may reach 1700
The precious meta[1]l is back in the green. Investors have ignored the strong reading from the U.S. new home sales yesterday as well as disregarded the comments by the U.S. president, Donald Trump, who claims the media has exaggerated the...