[Chart courtesy of MarketWatch.com]
- Moving the markets
With the effects of the coronavirus on everyone’s mind, China felt obliged to assure the world that it will take measures to help virus-stricken businesses by identifying weak links in supply chains. That was enough to get a rebound started with the S&P 500 and Nasdaq promptly scoring new intra-day all-time highs.
At the same
time, the Chinese claimed that the rate of new cases has
to slow down creating optimism that the much-feared trade and travel disruptions
may not be as bad as assumed, but the WHO still has recommended caution.
Helping the rebound was the release of the Fed’s minutes indicating that officials think that the economy appeared stronger in late January than had been expected. As a result, interest rates were kept unchanged, although concerns were voiced about the threat of the coronavirus, not just in China but globally as well.
Looking at the big picture, domestic equities have kept their bullish trend intact this month, on one hand helped by positive earnings reports while, on the other, being neutralized a tad as global growth has slowed due to the effects of the virus, the full impact of which is still to be felt.
However, right now, the bullish theme continues unabated.(more…)