{"id":84474,"date":"2020-01-22T09:20:40","date_gmt":"2020-01-21T22:20:40","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=84474"},"modified":"2020-01-22T10:03:02","modified_gmt":"2020-01-21T23:03:02","slug":"the-overnight-report-coronavirus-pulls-stocks-down","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/01\/22\/the-overnight-report-coronavirus-pulls-stocks-down\/","title":{"rendered":"The Overnight Report: Coronavirus Pulls Stocks Down"},"content":{"rendered":"

News of the coronavirus speading inside China and elsewhere, including into Australia, unsettled financial markets overnight.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight (Mar)<\/strong><\/span><\/td>\n7020.00<\/strong><\/span><\/td>\n+ 12.00<\/strong><\/span><\/td>\n0.17%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n7066.30<\/strong><\/span><\/td>\n– 13.20<\/strong><\/span><\/td>\n– 0.19%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n3320.79<\/strong><\/span><\/td>\n– 8.83<\/strong><\/span><\/td>\n– 0.27%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n9370.81<\/strong><\/span><\/td>\n– 18.14<\/strong><\/span><\/td>\n– 0.19%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n29196.04<\/strong><\/span><\/td>\n– 152.06<\/strong><\/span><\/td>\n– 0.52%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n12.92<\/strong><\/span><\/td>\n+ 0.82<\/strong><\/span><\/td>\n6.78%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.77<\/strong><\/span><\/td>\n– 0.07<\/strong><\/span><\/td>\n– 3.65%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n97.56<\/strong><\/span><\/td>\n+ 0.13<\/strong><\/span><\/td>\n0.13%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7610.70<\/strong><\/span><\/td>\n– 40.74<\/strong><\/span><\/td>\n– 0.53%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n13555.87<\/strong><\/span><\/td>\n+ 6.93<\/strong><\/span><\/td>\n0.05%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Greg Peel will resume writing the Overnight Report after Australia Day (next week). In the meantime, Jessica Amir from Bell Direct is providing a snapshot of insights and developments from overseas markets overnight.<\/em><\/p>\n

By Jessica Amir, Bell Direct<\/p>\n

The Australian share market is eyeing a cautious start to Wednesday’s session, after US stocks retreated from record levels ending their six day winning streaks, on news that the deadly coronavirus, which has killed 6 people in China, has spread to the US, Thailand, South Korea, Japan and Taiwan. <\/span><\/span><\/p>\n

Shares in casino and hotel companies fell sharply with the likes of Las Vegas Sands falling -5% and Wynn Resorts down -6%, on fears that the outbreak would dent China international travel numbers. Airline stocks also fell on the news, with United Airlines and Delta Air down -5%, along Boeing (but Boeing had issues of its own with 737 Max regulator delays). <\/span><\/span><\/p>\n

Meantime, it was the first day of trade for the US after a long weekend (to celebrate Martin Luther Jr Day) and investors reacted to the IMF downgrading global growth by -0.1% to 3.3% in 2020, largely as India’s economy slows (India’s expected growth dropped by -1.2% (to 5.8%)). <\/span><\/span><\/p>\n

Even though global growth forecasts ticked higher than last year’s 2.9% recorded growth, the IMF's chief economist Gita Gopinath said the projected recovery in global growth remains uncertain. The IMF said as the US-China trade deal was inked, trade and manufacturing activity could soon bottom out. <\/span><\/span><\/p>\n

Markets<\/span><\/span><\/strong><\/p>\n

On Wall Street, with investors locking in profits, the Dow Jones<\/strong> lost -0.5%\/152 points, S&P500<\/strong> slipped -0.3% and Nasdaq<\/strong> lost -0.2%. The market has already carried momentum from 2019 to this year, with the S&P500 up around 3%, following the 28% lift last year. This was its biggest annual gain since 2013. <\/span><\/span><\/p>\n

European markets were also mostly lower on China virus concerns. The Stoxx 600 lost -0.14%<\/strong>, the CAC<\/strong> lost -0.5%, while the German DAX<\/strong> rose 0.1%<\/span><\/span><\/p>\n

In Asia, <\/span><\/span><\/strong>stocks in Hong Kong led markets lowers after Moody’s cut its rating for the city to Aa2 from Aa3. While in Japan, the BOJ's short-term policy rate remained on hold at -0.1%, also keeping its 10-year bond yield target at 0%, largely in line with forecasts. Japan’s Nikkei ended -0.9% lower, Hong Kong’s Heng Seng lost -2.8%, and China’s Shanghai Comp lost -1.4%.  <\/strong><\/span><\/span><\/p>\n

The Aussie share market futures are suggesting a 0.1%\/9 point gain. Yesterday we saw the benchmark index, ASX200 lost -0.2% or 13 points, ending the five-day winning streak before closing at 7,066 points, and almost wiping out Monday’s gains. Year to date, the market is up 5.7%. <\/span><\/span><\/p>\n

Gold<\/span><\/span><\/strong> shed -1% falling to US$1,557 an ounce, as investors booked profits as the commodity hit a two-week high ($1,568) earlier on news of the virus outbreak. <\/span><\/span><\/p>\n

Oil fell -0.3% to <\/span><\/span><\/strong>US$58.25 a barrel, with Libyan exports remaining halted as the nation’s crude remains under military force. The IMF maintained its 2020 forecast for WTI Crude of US$57 and Brent at US$62. <\/span><\/span><\/p>\n

Iron ore<\/span><\/span><\/strong> last traded at US$94.81 a tonne, holding onto that weekly 1.3% gain. <\/span><\/span><\/p>\n

Australian dollar <\/span><\/span><\/strong>trading at a weekly low of 68.73 US cents. <\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Spot Metals,Minerals & Energy Futures<\/strong><\/span><\/td>\n<\/tr>\n
Gold (oz)<\/strong><\/span><\/td>\n1557.50<\/strong><\/span><\/td>\n– 2.90<\/strong><\/span><\/td>\n– 0.19%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n17.77<\/strong><\/span><\/td>\n– 0.26<\/strong><\/span><\/td>\n– 1.44%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n2.79<\/strong><\/span><\/td>\n– 0.05<\/strong><\/span><\/td>\n– 1.90%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n0.82<\/strong><\/span><\/td>\n+ 0.00<\/strong><\/span><\/td>\n0.15%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n0.89<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.96%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n6.16<\/strong><\/span><\/td>\n– 0.15<\/strong><\/span><\/td>\n– 2.44%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.12<\/strong><\/span><\/td>\n+ 0.00<\/strong><\/span><\/td>\n0.06%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n58.34<\/strong><\/span><\/td>\n– 0.32<\/strong><\/span><\/td>\n– 0.55%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n64.47<\/strong><\/span><\/td>\n– 0.72<\/strong><\/span><\/td>\n– 1.10%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t) futures<\/strong><\/span><\/td>\n95.85<\/strong><\/span><\/td>\n0.00<\/strong><\/span><\/td>\n0.00%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Australian share market over the past thirty days…<\/strong><\/p>\n

<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
DXS<\/td>\nDEXUS PROPERTY<\/td>\nUpgrade to Buy from Neutral<\/td>\nUBS<\/td>\n<\/tr>\n
IFN<\/td>\nINFIGEN ENERGY<\/td>\nUpgrade to Add from Hold<\/td>\nMorgans<\/td>\n<\/tr>\n
MFG<\/td>\nMAGELLAN FINANCIAL GROUP<\/td>\nDowngrade to Underperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
MGR<\/td>\nMIRVAC<\/td>\nUpgrade to Neutral from Sell<\/td>\nUBS<\/td>\n<\/tr>\n
MP1<\/td>\nMEGAPORT<\/td>\nDowngrade to Hold from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Neutral from Buy<\/td>\nUBS<\/td>\n<\/tr>\n
MTS<\/td>\nMETCASH<\/td>\nUpgrade to Neutral from Underperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
NHF<\/td>\nNIB HOLDINGS<\/td>\nUpgrade to Neutral from Sell<\/td>\nCiti<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nUpgrade to Neutral from Sell<\/td>\nUBS<\/td>\n<\/tr>\n
NUF<\/td>\nNUFARM<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
ORG<\/td>\nORIGIN ENERGY<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
PRU<\/td>\nPERSEUS MINING<\/td>\nUpgrade to Outperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Underperform from Outperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
PTM<\/td>\nPLATINUM<\/td>\nDowngrade to Underperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
QAN<\/td>\nQANTAS AIRWAYS<\/td>\nDowngrade to Neutral from Buy<\/td>\nCiti<\/td>\n<\/tr>\n
RIO<\/td>\nRIO TINTO<\/td>\nDowngrade to Accumulate from Buy<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
SCG<\/td>\nSCENTRE GROUP<\/td>\nDowngrade to Sell from Neutral<\/td>\nUBS<\/td>\n<\/tr>\n
SYD<\/td>\nSYDNEY AIRPORT<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
WHC<\/td>\nWHITEHAVEN COAL<\/td>\nUpgrade to Hold from Lighten<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
WOW<\/td>\nWOOLWORTHS<\/td>\nUpgrade to Outperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For more detail go to FNArena's Australian Broker Call Report<\/a>, which is updated each morning, Mon-Fri.<\/p>\n

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here<\/a>. (Subscribers can access prices on the website.)<\/em><\/p>\n

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)<\/strong><\/em><\/p>\n

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts on the website and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.<\/em><\/p>\n

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FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

News of the coronavirus speading inside China and elsewhere, including into Australia, unsettled\u00a0financial markets overnight (Available for non-subscribers after 10am)<\/p>\n","protected":false},"author":3,"featured_media":84479,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/84474"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=84474"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/84474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/84479"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=84474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=84474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=84474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}