While the escape from risky assets increased due to the virus effect, stocks, crude oil and Chinese Yuan fell sharply. The search for a safe harbor has accelerated.
Concerns about the deadly ‘coronavirus’, such as the SARS in China, have accelerated the search for a safe haven in international markets. While escaping from risky assets accelerated due to virus concerns, stocks, crude oil, and Chinese Yuan fell sharply with concerns about the virus. Assets such as gold, yen and franc appreciated with demand for safe harbor. While the number of people who died due to the virus increased rapidly, the rally that lasted for 2 months, especially in the stock markets, currencies and bonds of the developing country, has ended. While the Chinese Yuan recorded the worst performance among similar currencies, the Shanghai Stock Exchange closed the worst new year of 30 years.
Axitrader’s Asian market strategist Stephen Innes said, “An economic shock to China’s huge industrial and consumption engines can spread rapidly to other countries due to increased trade and financial ties with globalization. I think the right place to stop for a few weeks is cash. ”
While virus-related concerns have been influential in the domestic markets, the peak of the last 3 weeks in the dollar has attracted attention. The dollar, which opened the week at 5.95 liras, completed the day at 5.9450 liras. Yesterday gold was also active. The price of gold, which closed last week at 297.7 liras, started this week at 300 liras and closed the day at 302.09 liras. On the Borsa Istanbul, where hard sales were observed, the BIST 100 index closed the day at 120.149 points with a loss of 1.63 percent.