A security guard stands at the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, as the country is hit by an outbreak of a new coronavirus, February 3, 2020.
The total number of deaths in China from the coronavirus rose to 361 as of Sunday. It had stood at 17 when Chinese markets last traded on January 23. The new virus has created alarm because it is spreading quickly, much about it is unknown, and authorities' drastic response is likely to drag on economic growth."It's uncertain whether factory workers, or how many of them, will return to their factories," she said. "We haven't yet seen corporate earnings since the coronavirus. Restaurants and retailers may have very little sales.
Amid the selldown, the People's Bank of China injected $173.81 billion into money markets through reverse bond repurchase agreements. "It is a clear message that they want to take growth-supportive measures and keep the market reassured," said Mayank Mishra, macro strategist at Standard Chartered Bank in Singapore of the PBOC move.
LME Copper prices still weak, on fears of a global slowdown. Copper looks oversold now with RSI below 20. ChinaCoronaVirus