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Singapore has its first case of local coronavirus transmission

Six more confirmed novel coronavirus cases were identified in Singapore on Wednesday, with four of them infected by local transmission

This news has jittered nervousness among local investors and prompted more people to wear masks in public places.

The mortality rate of the 2019 n-CoV is much lower than SARS back in 2003, and as it spreads outside of the epicentre of Wuhan, its severity seems to have declined significantly. The mortality rate of the coronavirus in Wuhan itself, Hubei province excluding Wuhan and China excluding Hubei province are at 4.9%, 1.4% and 0.17% respectively. The mortality rate outside of China is negligible.

Nasdaq registered its best trading day in 2020, boosted by strong performance of Tesla (+13.7%) and broad optimistic sentiment across the technology sector. Chinese e-commerce giant Alibaba surged 4.59% and Tencent advanced 3.36%, extending a second-day rebound. This points to a higher opening in Asian stocks on Wednesday, as investors tend to believe that the global economy can weather the storm of the coronavirus with more monetary and fiscal stimulus.

However, continuous slide in crude oil prices painted a doomed picture of global energy demand. Brent oil broke down a key support level of US$ 56.5 and slumped to US$ 54.5 area this morning, extending a sharp declining trend. Traffic bans, cancellation of flights around the globe and delaying factory activities within China were attributing to soft commodity prices.

Forex market exhibited ‘risk-on’ pattern, with Yen retraced sharply whereas Aussie dollar rebounded significantly from yesterday’s low. RBA’s decision to hold policy rate unchanged paved a firm ground for AUD/USD at around 0.670 area, and a recovery of market sentiment boosted another round of rally in risk currencies. Immediate resistance level can be found at 0.676 and then 0.681 area.

Gold price fell for a second day to US$ 1,555, as improving risk appetite shed demand for safety. Immediate support level for gold can be found at around US$ 1,533 area.

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