Key News Overnight:
US stocks cratered, exacerbating a global sell-off, as authorities confronted the increasing likelihood of a world-wide coronavirus pandemic. The S&P 500 dropped 3.4%, and the Dow lost more than 1,000 points.
The risk-off mood sent gold up 1% to a fresh seven-year high, at one point approaching $1,700/oz. Oil plummeted more than 4% on intensified growth concerns, and industrial commodities were also hit.
The increase in the number of cases in Italy, Iran and South Korea is “deeply concerning,” but the WHO’s director general said the outbreak is not yet a pandemic.
The PBOC said it will put more emphasis on keeping monetary policy flexible as it steps up support to the real economy. It will consider new steps to counter the virus’s impact, and lenders will be encouraged to set up special loan quotas.
The outbreak could significantly dent Europe’s regional air traffic. Intra-European air travel fell about 0.4% due to SARS in the first half of 2003, and it may decline at least that much in this year’s first half as the cases in northern Italy rise.
In This Issue:
SRG Global (SRG) | Interim results | BUY | Ian Christie
Salt Lake Potash (SO4) | Stage 2 On-Lake Construction Complete | BUY | Analyst | Michael Eidne
Atrum Coal (ATU) | New Board appointment | SPEC BUY | Analyst | Matthew Keane
Recent Research:
Austal (ASB) | Maintains momentum | HOLD | Analyst | Ian Christie
Bellevue Gold (BGL) | Expansion and increased confidence| SPEC BUY| Analyst | Matthew Keane
Please read Argonaut’s Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note
