MARKET WATCH: Feb. 14, 2020
Big Picture
Coronavirus Outbreak Continues to Sway Markets
While concerns over the coronavirus remain front and centre for investors, N.A. markets have largely remained resilient–especially during the week’s first three trading sessions. Although gold rose and the U.S. dollar hit a four-month high Monday as global investors sought safe-have assets, North American stock markets rallied as U.S. economic data continued to indicate strength. On Tuesday, the S&P 500, Nasdaq and TSX inched to record closing highs, as Beijing expressed optimism that the coronavirus epidemic could be contained by April. U.S. markets then set new highs again on Wednesday after China reported the lowest number of new coronavirus cases in two weeks.
However, N.A. markets surrendered ground in trading Thursday after the number of new coronavirus cases spiked to nearly 15,000 in Hubei province, a clear sign that optimism over containment of the virus might have been premature. In currency news, it’s been an up-and-down week for the Canadian dollar. On Monday, the loonie hit a four-month low at US$1.33. The currency has struggled since the beginning of the year, weighed down by lower commodity prices and a more dovish stance from Canada’s central bank. However, the loonie strengthened to a one-week high against the greenback on Wednesday as reduced concern about the economic impact of the coronavirus outbreak boosted oil prices.