· CORONAVIRUS OUTBREAK
China says total death toll from virus outbreak at 1,868 people
China’s National Health Commission said there were 1,886 confirmed new cases on the mainland and 98 additional deaths related to the new, deadly strain of coronavirus, most of them occurring in Hubei province (see 7 a.m. update). As of Feb. 17, the Chinese government said there was a total of 72,436 confirmed cases and 1,868 people have died so far.
BHP warns on outlook
Australian mining giant BHP said Tuesday the coronavirus outbreak that has infected more than 70,000 people, mostly in China, is one of the major uncertainties for the company’s future.
“If the viral outbreak is not demonstrably well contained within the March quarter, we expect to revise our expectations for economic and commodity demand growth downwards,” the company said in a regulatory filing. BHP said it anticipates “a net demand loss” due to the disease outbreak in the near term.
BHP shares listed in Australia traded up 0.35%.
China's epidemic control is showing an improving trend: state media
Control of the coronavirus epidemic in China is showing an active and improving trend, state television quoted a meeting chaired by Premier Li Keqiang as saying on Monday.
With the measures the government has taken, the possible wider spread of the outbreak has been averted, it said.
The government is asking Hubei province, the epicentre of the outbreak, to continue with controls on the flows of people out of the province, it added.
Rise in coronavirus infections prompts Japan to limit public crowds
Japan canceled the emperor’s birthday celebrations next week as it moved on Monday to limit crowds to contain the spread of the coronavirus, and said it will close the Tokyo Marathon to all but elite professional runners.
· Euro struggles near three-year low as traders fret about economic slowdown
The euro struggled near 3-year lows on Monday as investors worried about weakening growth in the region, while Chinese efforts to limit the damage from a coronavirus outbreak appeared to calm markets, with the yuan and Australian dollar gaining.
Monday is light on economic data but traders are looking to a German business sentiment indicator due on Tuesday and purchasing managers index flash data on Friday for further evidence on the state of the euro zone economy.
The euro nudged higher to $1.0845 EUR=EBS in early trading but had earlier touched $1.0817, its weakest since mid-2017.
The currency has lost 2.3% of its value against the dollar so far in February.
The yen was unfazed by weak economic growth data in Japan. It traded down 0.1% at 109.84 yen per dollar JPY=EBS.
Japan, the world’s third-largest economy, shrank 1.6% in the three months to December, the largest drop in six years, hit by a sales tax hike.
The dollar index .DXY stood at 99.095, near Friday’s 4-1/2-month high of 99.241.
The offshore Chinese yuan CNH=EBS gained 0.2% to 6.9815 per dollar.
Some analysts think the market may be underestimating the hit from the coronavirus on both China’s economy and on growth in the rest of the world, especially Asia.
“For China, our new base case is 3.0% GDP growth in Q1, with the risk firmly skewed to an even lower number - too much damage has already been done and initial policy stimulus will not be very effective,” Nomura strategists said in a research note.
· German growth to remain weak in first quarter as coronavirus hits: Bundesbank
German economic growth will remain weak in the first quarter of 2020, weighed down by weak exports and the coronavirus outbreak in China, the Bundesbank said in a regular economic report on Monday.
Europe’s largest economy stagnated in the fourth quarter and expanded by just 0.6% in all of last year as its vast manufacturing sector fell into recession, spreading gloom across much of the euro zone.
· China may delay key parliament, political panel meetings
China’s parliament and its top political consultative body are both considering delaying annual meetings set for March, state media said on Monday, as the country battles a coronavirus outbreak that has killed more than 1,700 people.
The meetings of the parliament, or National People’s Congress (NPC), and the Chinese People’s Political Consultative Conference (CPPCC) were both due to begin early next month.
The gatherings see more than 5,000 delegates descend on Beijing, the capital, from all over China, for at least 10 days, to pass legislation and unveil the year’s key economic targets.
· BOJ's Kuroda flags more easing if virus impact worsens: Sankei
Bank of Japan Governor Haruhiko Kuroda said the central bank would consider additional rapid easing if the coronavirus outbreak significantly threatened Japan’s economy and price trends, the Sankei newspaper reported on Monday.
· UK households' confidence in finances hits record high in February: IHS Markit
A gauge of how Britons feel about their household finances hit its highest level on record this month, the latest sign of a confidence bounce since Prime Minister Boris Johnson’s decisive election win in December.
The IHS Markit Household Finance Index jumped to 47.6 in February from 44.6 in January, the highest index reading since the survey began 11 years ago.
“Our latest Household Finance report signals a number of developments that should keep the Bank of England doves at bay and build optimism toward the UK’s immediate economic prospects,” Joe Hayes, an economist at IHS Markit, said.
· Oil edges up as output cut hopes offset coronavirus concern
Oil prices inched up on Monday as concerns over the economic fallout from the coronavirus outbreak in China were offset by expectations that potential production cuts from major producers could tighten global crude supply.
Brent crude LCOc1 was at $57.59 a barrel, up 27 cents, by 12:55 p.m. EST (17:55 GMT) after rising 5.2% last week, its biggest weekly gain since September 2019.
U.S. West Texas Intermediate crude CLc1 was up 23 cents to $52.28 a barrel, after a 3.4% gain last week.
Trading volumes were thin due to the U.S. Presidents Day holiday.
Reference: Reuters, CNBC
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