Yesterday, February 10th, was once again marked by fears related to the coronavirus.
On a day when the World Health Organization (WHO) said that the number of cases is expected to increase in the near future, the main European stock exchanges had a mixed performance throughout yesterday. In particular, the main European index - Stoxx 600 - ended the day with a slight increase of 0.07%. In the debt market, most yields in European countries fell, reflecting the increased demand for these more secured assets.
Insecurity regarding the future impact of the virus, leads investors to look for more secure assets such as the US dollar and as a consequence of this we see a fall in the value of the euro against the dollar.
Furthermore, crude oil ended up closing yesterday's session falling. Rumors that the countries of Organization of Petroleum Exporting Countries (OPEC) and Russia cannot meet in the near future in order to reduce the existing oil supply, eventually pressured the price of oil. However, while we wait for this meeting, the uncertainty regarding the virus may continue to contribute to a drop in demand.
Gold, as a safe haven asset, ended up being sought after by investors. The yellow metal then rose over the course of the day where, once again, the major cause is uncertainty about the coronavirus.
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