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Unconfirmed coronavirus treatment
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Major indices keep surging
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Oil prices up almost 4%
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Astonishing ADP data from the US
Another day brings us key news on coronavirus, which is crucial for the future global economy outlook. As of Wednesday, China’s officials confirmed more than 24,000 cases, resulting in almost 500 deaths. This time however, we might as well be a little bit optimistic as China’s TV reports about a possible drug that is about to treat people with the coronavirus.
Multiple reports of a possible treatment are regarded as a possible breakthrough by the markets. Major indices in the US and Europe are surging, the growth pace is not as impressive as yesterday, though.
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Worth mentioning is certainly the oil price. Both Brent and WTI are up almost 4%. An astonishing surge may result from a dose of optimism regarding coronavirus - a long-term demand in China might not collapse entirely. Moreover, OPEC allies are reportedly considering further output cuts to counter a possible drop in global oil demand.
As far as economic data is concerned, markets were surprised by terrific employment figures from the US. According to ADP, private payrolls rose by 291,000 in January, which is the highest increase since May 2015 and well above the 150,000 estimate. The figure may be viewed as a key indicator for the US economy and such astonishing growth helps the US dollar to gain against the euro. In addition to that, the ISM Non-Manufacturing Index was released. The latest reading showed a solid 55.5 points, beating 55.1 expectations. The latter also helps maintain a strong position of the US dollar.
Oil prices are up almost 4% today. Possible coronavirus treatment and alleged OPEC news may have had an impact. Source: xStation5
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