almost insensitive to news from China

The New York Stock Exchange should once again remain insensitive to the bad news from China on Friday, despite a record of the epidemic of coronavirus which continues to increase.

Half an hour before the opening, future contracts on the major American indices are advancing on average by 0.1%, announcing a start of trading in very slight increase.

Beijing, however, said on Friday that it had identified 5,090 additional cases of Covid-19 and reported 121 new deaths on Thursday alone, statistics which at first glance are not reassuring.

American equities, however, have tended to outperform the rest of the world’s markets since the outbreak of the epidemic, a situation that should not worsen today.

“The contrast between the strength of the positive momentum on the major equity indices and the flow of new anxieties which is delivered to us every day has rarely been so significant”, says Nadge Dufoss, responsible for asset allocation at Candriam.

“Investors in stocks seem to have resolutely chosen a rather optimistic camp”, she continues.

‘By way of simplification, we can say that the equity markets take into account the idea that this negative impact, even a strong one, is only temporary and will be largely caught up in the second half of the year’, sums up the grant.

Recalling nonetheless that the border between ‘optimism’ and ‘complacency’ is often held, Candriam says he has made the choice – since the end of January – to be ‘a little more careful’, while waiting for better visibility on the evolution and impact of the epidemic.

The pandemic does not seem to have any effect on American economic indicators, at least for the moment.

After increasing 0.2% in December, retail sales in the United States rose 0.3% in January, a development in line with what economists expected.

Import prices remained stable in January, while analysts expected a 0.2% drop.

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