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Chinese stocks tumbled as traders returned from an extended lunar new year holiday, with the CSI 300 index of Shanghai- and Shenzhen-listed equities falling as much as 9.1 per cent on Monday to mark the worst opening in nearly 13 years

The drop came despite the central bank pumping Rmb1.2tn ($171bn) in additional liquidity into the financial system — its biggest one-day open market operation since 2004 — to help cushion the blow of the country’s deadly coronavirus outbreak.”

https://www.ft.com/content/14867176-461e-11ea-aeb3-955839e06441


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Chinese oil demand has dropped by about three million barrels a day, or 20 per cent of total consumption, as the coronavirus squeezes the economy, according to people with inside knowledge of the country’s energy industry.

“The drop is probably the largest demand shock the oil market has suffered since the global financial crisis of 2008 to 2009, and the most sudden since the Sept 11 attacks.”

https://www.straitstimes.com/business/economy/china-oil-demand-has-plunged-20-on-wuhan-virus-lockdown-biggest-shock-since-global


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Chinese commodity prices collapsed on the first day of trading after the Lunar New Year break as investors returned to markets gripped by fear over the impact the coronavirus will have on demand in the world’s biggest consumer of raw materials.

“The country’s three major commodity exchanges were hit by a fevered bout of selling…”

https://finance.yahoo.com/news/commodity-prices-collapse-china-demand-010846588.html


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Hong Kong is due to unveil the depth of its first recession in a decade later on Monday, as violent anti-government protests and trade tariffs between Washington and Beijing took more steam out of the economy in the final quarter of last year.

“The worst is yet to come, with no end in sight to the protests in the Chinese-ruled city and a new coronavirus outbreak in mainland China.”

https://www.nasdaq.com/articles/hong-kong-to-unveil-depth-of-2019-recession-as-protests-trade-war-bite-2020-02-02


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South Korea’s factory activity slipped back to contraction in January on weak domestic sales, a private business survey showed on Monday (Feb 3), suggesting persistent pressure on an economy struggling to regain its footing.

Worryingly, the latest survey didn’t reflect the outbreak of a rapidly spreading new coronavirus in China…”

https://www.straitstimes.com/business/economy/south-korea-factory-activity-returns-to-contraction-wuhan-virus-casts-shadow


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Japan’s manufacturing activity shrank for a ninth month in January as output and new orders contracted again, pointing to further strains on the economy, a business survey showed on Monday.

That pressure could build rapidly in coming weeks as a virus outbreak raises the risk of a sharp blow to China’s economy that would weigh on its Asian neighbours.”

https://uk.reuters.com/article/uk-japan-economy-pmi/japans-factory-activity-contracts-again-in-january-virus-raises-fresh-risks-idUKKBN1ZX027


The stock markets gave a thumbs down to [Indian] Minister of Finance Nirmala Sitharaman’s pro-middle class Budget speech, which was devoid of what investors wanted to hear; there was no change to the long-term capital gains tax structure and no big push to boost consumption and stimulus.”

http://www.forbesindia.com/article/budget-2020/markets-slump-as-budget-2020-disappoints-investors/57459/1


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Official figures showed that growth in the eurozone eased back from 0.3% to 0.1% in the final three months of 2019. France and Italy – the second- and third-biggest monetary-union countries – both recorded falls in output. Data for Germany, Europe’s powerhouse economy, has yet to be released, but the signs are that it grew by as little as 0.1%…

“Europe has never really recovered from the last crisis.”

https://www.theguardian.com/business/2020/feb/02/eu-states-in-poor-health-to-withstand-global-crisis


“Research from academics at the University of Sussex and Loughborough University shows that the [UK’s] productivity growth slowdown since the 2008 financial crisis is nearly twice as bad as the previous worst decade for efficiency gains, 1971-1981, and is unprecedented in more than two centuries.”

https://www.theguardian.com/business/2020/feb/03/uk-productivity-slowdown-worst-since-industrial-revolution-study


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As if the public health impact of the coronavirus outbreak is not scary enough, the economic fallout from the disease could be just as contagious — and dangerous. The close-down of commerce in large parts of China threatens not just the output of the second largest economy on the planet but the whole world.

“The interwoven nature of global trade means that the business and economic consequences of the disease could move rapidly from the Asia-Pacific region, infecting the U.S. and an already stagnating European economy.”

https://www.dailymail.co.uk/debate/article-7959579/City-Editor-ALEX-BRUMMER-asks-China-crisis-tip-recession.html


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“With tens of millions of Chinese people quarantined inside their cities and thousands of factories closed, it is already clear that the coronavirus is about to sideswipe the global economy

“”… it is clear that unless a cure and a vaccination are found rapidly, the fragile recovery that we predict is at risk.””

https://www.theguardian.com/business/2020/feb/01/fears-global-economic-slowdown-coronavirus-follows-trade-war


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“Ralph Acampora, the “godfather” of technical analysis, says the stock market will plunge 10% as the coronavirus spreads. That’s bad enough for most market technicians to consider it a full-blown correction. But it could be a catalyst for a total stock market crash.

Stocks haven’t been this vulnerable to macro threats and systemic weaknesses since the Great Recession and Dot Com bubble.”

https://www.ccn.com/coronavirus-will-trigger-an-epic-stock-market-crash-warns-godfather-analyst/


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