Feb 13 (Lagos) - The sentiment pendulum swung deeper into “risk-on” territory on Wednesday with Asian shares closing higher, as investors assessed the coronavirus outbreak against speculation around central banks loosening monetary policy.
Asian investors breathed a sigh of relief as the number of new coronavirus cases appears to be slowing. However, there remains a thick cloud of uncertainty over how badly the outbreak has impacted China, Asia and the global economy.
With the death toll from the virus topping one thousand with 42,000 confirmed cases, investors are likely to remain wary and cautious despite the apparent “risk-on” mood. The positive vibe from Asian markets may support European shares this morning and potentially trickle back down to Wall Street which closed at fresh record highs overnight.
Source - by Lukman Otunuga, Senior Research Analyst at FXTM