25Feb by Westpac Bank

Equity markets remained downbeat on Friday, with coronavirus and disappointing US data contributing to the mood. The S&P500 closed down 1.1%, and the US dollar and bond yields fell.

The mood in equity markets soured as coronavirus fatalities outside China rose and company earnings reflected the pandemic’s impact. The S&P500 is down 0.7%, and bond yields and the AUD and NZD are lower.

US equity markets followed the more positive mood of Asian and European counterparts, raising the S&P500 0.6% to a fresh record high. Markets took note of the slight deceleration in new coronavirus cases, as well as further stimulus plans from China. The USD was helped by solid economic data, while bond yields consolidated.

US equity markets returned from the President’s Day holiday in a moderately defensive mood following news that Apple’s sales would suffer from production and demand disruptions due to the coronavirus pandemic. The S&P500 is down 0.4%, and bond yields and the AUD and NZD are slightly lower.

Markets were thinned during the US holiday, although S&P500 futures did trade 0.2% higher at a fresh record high. The Eurostoxx 50 closed 0.3% higher, while global bond yields and currencies were contained. The dominant influence remained pandemic developments.

Although US economic data disappointed on Friday night, equity markets appeared heartened by recent signals that the Fed will intervene if the coronavirus pandemic becomes more severe than expected. The S&P500 closed up 0.2% at a fresh record high. Bond yields fell slightly, while the AUD and NZD were little changed

Markets were briefly rattled yesterday by a methodology-related jump in China’s coronavirus cases, but calmed overnight. The S&P500 is little changed overall, as are US bond yields and the AUD and NZD.

Sentiment remained upbeat amid optimism the coronavirus pandemic will be contained, the economic effects temporary. The S&P500 is up 0.5% to a fresh record high, while bond yields, commodities, and the AUD and NZD are also higher.

Sentiment was upbeat amid optimism the coronavirus pandemic would be contained. The S&P500 is up 0.5% to a fresh record high, while bond yields, commodities, and the AUD and NZD are also higher.