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Coronavirus dents equity market confidence as fear of the unknown kicks in


13/02/2020

china frantically shuts down stock market to prevent coronavirus selloff

Here's what influenced the markets last month:

Bonds:

  • US 10-year treasury yields fall below 1.6% as economists predict first-quarter Chinese GDP will be at least 1% lower. 
  • NZ government bond index up 2% for the month which has helped offset global equity market declines.

Australasian equities:

  • Australian ASX300 market outperforms the NZX 50 by over 2% for the month but still about 7% behind for the last year. 
  • Best January for Australian shares in nearly a decade.
  • Local tourism stocks suffer as Coronavirus impacts travel out of China

International shares:

  • Coronavirus dents equity market confidence as fear of the unknown kicks in.
  • US markets retrace from record highs and are only marginally lower for the month.
  • US embassy in Baghdad bombed by pro-Iranian militia and the US retaliates immediately with a drone strike. 
  • Europe loses a few pounds as the UK finally implements Brexit plans.

NZD:

  • NZD down over 4% against the US dollar and Yen in January.
  • AUD weaker as bushfires continue to blaze.

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