Market Sentiment Still Weak on Virus Fears

Market sentiment analysis:

• Trader confidence continues to suffer from the spread of the coronavirus and its possible impact on the global economy.
• However, so far, the impact has been largely on the stock markets, with currency and commodity prices holding up relatively well.

Traders less confident about global economy

Traders remain agitated about the spread of the coronavirus and its possible impact on the global economy although, so far, the impact has been largely seen in stocks rather than currencies or commodities. One of the hardest hit stock markets has been Italy’s, due to the outbreak there.

FTSE MIB Price Chart, Four-Hour Timeframe (January 1 – February 25, 2020)

Chart by IG (You can click on it for a larger image)

However, the market impact of the Covid-19 outbreak has been offset in part by hopes that central banks and governments will reduce the impact by loosening monetary and fiscal policy.

In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded podcasts.

Recommended by Martin Essex, MSTA

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— Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below