Stocks ripped higher in overnight trading. The Euro Stoxx 50 index closed up almost 2%, putting the US S&P 500’s gain of 1.5% in the shade. Bonds and gold tumbled as investors shrugged off coronavirus concerns. Stronger US factory orders and solid company reports underpinned the rally, although the optimism failed to lift industrial commodities.

Global investors appear to view the coronavirus as no threat to the economic outlook, despite the ongoing exponential rise in new infections. Stock volumes rose as buyers committed to buying the dip, and major indices are once again headed toward all-time highs. The US dollar rose as confidence returned.

West Texas Intermediate crude oil slipped below $50 a barrel for the first time in 12 months. Base metals regained some lost ground, but iron ore markets remain under pressure. The contrast between industrial commodities and share markets needs resolution.

Asia Pacific futures markets point to strength across the region today. The RBA governor speaks today in Sydney, and may further explain the more hawkish tone of yesterday’s statement that accompanied the decision to hold interest rates steady.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.