On Tuesday, the global stock markets had somewhat mixed results after Wall Street stocks dropped despite a cut in interest rate by the Fed, which was aimed towards diffusing the fears associated with the Coronavirus.
The interest rate cut by the Fed was the first unannounced one since the 2008 economic crisis. They have a history of coming to the market's rescue with lower rates and other measures. But the interest rate cut of yesterday got some traders worried that an even bigger impact on the economic front is coming.
In other parts of the world today, while Germany and Shanghai gained, the same cannot be said for London which opened lower. Sydney and Hong Kong declined today and in South Korea, after the government announced that a $9.8b spending package will be given to pay for medical supplies.
Oil Prices Climb
WTI Crude prices ended 0.92% higher yesterday and closed at $47.2 per barrel. OPEC and its allies are rumoured to be cutting production and Vladimir Putin, said he would cooperate with OPEC +, while carefully pointing out that the current Oil prices suit Russia's budget.
So, the current trend has brought Oil 4% up from Monday and more than 2% on Tuesday. This optimism in Oil prices is most welcomed after one of the worse weeks in years.
Crude Oil is expected to trade higher today after being steady till mid-day.
Passenger car sales fall 80% in China
One of the world's biggest auto market, China has seen a considerable decline in passenger car retail sales in February.
Even if dealers returned to work in the first few weeks of February, traffic to their showrooms is very slow.
Toyota was the first to report its February sales in China, said sales last month was 70% lower than last year.
More bad news is expected in the automotive industry as Toyota's rival in China; General Motors which is China's second-largest manufacturer said that serious challenges are expected in the first quarter of the year.
Financial Events to watch for today
15.30 Crude Oil Inventories