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Good morning. The disease caused by the new coronavirus has an official name, central bank policymakers will be front-and-center again and Bernie Sanders won in New Hampshire. Here’s what’s moving markets.
Covid-19
A commentary piece in a medical journal has suggested preliminary data indicating the existence of the virus was known around two weeks before key information was publicly released. Meanwhile, the death toll continues to rise and Chinese leaders vow to continue to meet economic goals. Chinese cities are on lockdown, Singapore is preparing its budget response and the virus also stands to impact U.S.-North Korea relations. And the World Health Organization has now given the disease caused by coronavirus its official name: Covid-19.
Policy Pointers
Federal Reserve Chairman Jerome Powell will testify before lawmakers for a second day on Wednesday, having used the first day of testimony to say the central bank is examining the potential impact coronavirus will have but that monetary policy is appropriate as it is for the time being. European Central Bank policymakers were also very active, with President Christine Lagarde among those defending the stimulus measures the ECB has undertaken while also saying the bank remains wary of any possible side effects. Further Fed and ECB officials will speak on Wednesday, yet more catnip for monetary policy followers.
New Hampshire
The New Hampshire Democratic primary saw Senator Bernie Sanders come out on top and positioning himself firmly as the choice of the progressives in the party. The question when the next states vote is who his main challenger is going to be. Pete Buttigieg strengthened his claim as the pick for those after a more moderate presidential pick with a second-place showing, Amy Klobuchar was a surprise third and both Elizabeth Warren and Joe Biden were disappointed again. There is still much to play for as the primary season winds its way toward Super Tuesday on March 3.
Oil
The OPEC monthly oil report will arrive on Wednesday, ahead of U.S. crude stockpiles in the European afternoon, all at a delicate time for the oil market. The coronavirus and the fears it has created around Chinese demand for crude has hit the market so far this year but prices have recovered somewhat ahead of another key meeting between Russia’s government and the country’s oil companies as it considers whether to cut production to underpin prices. Watch developments in Libya too, where experts are studying oil revenue sharing options in a bid to resolve the country’s political crisis.
Coming Up…
Asian stocks were mixed on Wednesday as investors continued to weigh up the impact of coronavirus against any potential policy support which may materialize to ease the pain. New Zealand’s central bank left rates unchanged and Sweden’s Riksbank will announce its latest decision as it works to convince watchers on its decision to end its sub-zero rate experiment. Euro-area industrial production data will be released and the earnings day is topped by brewer Heineken and Gucci-owner Kering.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
Study shows robots outwit humans on investment picks. Five hedge fund bosses who made at least $1 billion last year. Psychedelics companies are coming to market. The endurance challenge that is ‘Everesting’. Record-breaking heat is here to stay. A fugitive billionaire sells a painting for $30 million. Does money destroy friendships?
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To contact the author of this story: Sam Unsted in London at [email protected]
To contact the editor responsible for this story: Celeste Perri at [email protected]
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