Worried by the mounting death toll from the coronavirus and drastic efforts to contain it, investors dashed for the exits as Chinese markets reopened following an extended Lunar New Year break (markets have been closed since Jan. 23). Shanghai plunged 7.7%, Shenzhen tanked 8.5% and the tech-heavy Chinext Composite slumped 6.9%, marking the heaviest loss since August 2015 in the aftermath of the bursting of an equity bubble. Officials tried to head off the panic, but to little avail. The PBOC injected $174B into money markets and cut rates by 10 basis points, while the China Securities Regulatory Commission told traders they weren't allowed to be net sellers of equities this week and brokerages were only allowed to sell to meet redemptions. (SA)
Global dealmaking got off to its slowest start in seven years in 2020, more than halving from a year earlier as companies failed to seal transactions of a similar scale.
Companies across the globe clinched $164bn worth of mergers and acquisitions in January, led by declines in dealmaking in the US and across Asia-Pacific, according to data provider Refinitiv. January marked the quietest month for takeovers since April 2013. (FT)
S&P 500 is up 19, and the NASDAQ is up 61. The MSCI International Index is down 3/10’s of a %.
With crude trading near $51 a barrel - after a slump of about 16% in January - OPEC and its allies are considering calling an emergency meeting. Potential dates being discussed begin next week, though for now the next regular meeting on March 5-6 remains on schedule. OPEC, meanwhile, is holding a meeting of technical representatives - the Joint Technical Committee - on Tuesday and Wednesday to assess the coronavirus's effect on markets and demand, according to delegates. (OPEC)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.