Weekly News Summary for February 14-20, 2020

Friday, February 14, 2020: Covid-19 Confusion, Singapore Recession Not Ruled Out

Confusion surrounded the spread of the Covid-19 virus on Friday, after Chinese authorities removed more than a hundred alleged victims on the official death toll, saying it had double-counted, but the official number still grew to 1,383 and confirmed cases rose to over 64,000.

Hong Kong has also confirmed 56 cases, while Singaporean Prime Minister Lee Hsien Loong did not rule out the possibility of a recession on the island state due to the Covid-19 outbreak.

Monday, February 17, 2020: Xi Signals More Stimulus Measures

Chinese President Xi Jinping signaled more stimulus measures for the world’s second largest economy, as the impact of the Covid-19 virus continued to weigh on business and banks, stating that the country’s leaders still need to deliver this year’s economic and social targets.

Meanwhile, the People’s Bank of China lowered the rate on its medium-term financing facility by 10 basis points to 3.15%, although the move only directly affects some 200 billion yuan.

Tuesday, February 18, 2020: Apple Warns of Revenue Miss due to Covid-19

Apple warned on Monday that it would not be able to meet its revenue target for the March-quarter, as it faced lower sales in China and manufacturing constraints in its supply chain, due to the Covid-19 epidemic.

The iPhone-maker did not revise its sales outlook of between $63 and $67 billion, reflecting high uncertainty that disrupted global stock markets on Tuesday.

Wednesday, February 19, 2020: Gold Hits Near 7-year High on Coronavirus Concerns

Gold prices hit close to a 7-year high on Wednesday, as concerns over the global economic impact of the coronavirus outbreak fueled investors’ appetite for safe-haven assets, while the possibility of a supply shortfall extended the palladium’s record rally.

Spot gold rose $1,610.80 to mark as its highest since Jan. 8, when the yellow metal reached its highest in nearly seven years, while US gold futures climbed $1,614, and palladium booked a record high of $2,841.54 per ounce.

Thursday, February 20, 2020: Oil Prices Extend Gains on Supply Disruptions

Oil prices inched up on Thursday, as the market turned its attention to supply disruptions, while worries over demand slightly eased following a sharp decline in new coronavirus cases.

Brent crude futures advanced to $59.38 per barrel, after rising as high as $59.71 earlier in the day, while the West Texas Intermediate crude futures were up to $53.83 per barrel.