The Corona virus outbreak continues to escalate in China with 7711 confirmed cases and 170 deaths, dampening Asian markets. Major indices such as NIKKEI225 recorded a 1.72% drop with Hang Seng falling by almost 1.5%. Elsewhere, Korean stocks plunged for the second time this week on corona virus fears.
Already, we have seen 16 airlines cancel their flights to China until further notice such as British Airways, Air Canada, and Cathay Pacific. According to Gaurav Kashyap, several travel-related stocks such as airlines have weakened over the course of the week.
The virus threatens crude oil demand, leading to declining oil prices, with OPEC set to meet next week to prevent any destabilization to oil markets. Brent oil was at $57.22 per barrel in early Thursday trading.
On Wednesday, the Federal Reserve maintained the interest rates in the range of 1.50% and 1.75%. The FED based their decision on stabilized global economic growth and reducing uncertainty around trade policy.
The Bank of England held its first meeting of the year on Thursday, 30th January 2020, and voted to keep interest rates on hold at 0.75%.