March 5, 2020 (Gold Market Wire) - In the Asia Pacific region Malaysia and Austalia both shaved 25 bps off their interest rates. That takes Malayasia to 2.5% and Australia to an all-time low of .50%. Overnight equity markets came in weak, with the S+P 500 off by as much as 1.5%. The French stock market was the worst performer, touching 2.3% down for the day in early a.m. trade.

It's Covid-19 talk everywhere, in every corner of the globe. Schools and Universities are being shut down in some European cities.

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But, whether in sickness or in health, the Japanese Yen has done it again...and buried a sea of believers that thought 'this' time was going to be... "it." It wasn't.

The window maker is firmly swinging the scythe, and the $/Yen graveyard continues to grow. 112 to 106.5 in ten sessions. Think the US Dollar is always on the verge of being finished? Try the Yen... the Japanese Yen has been officially "finished" for decades.

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Falling Equities after yesterday's roaring comeback. Off 1.5% overnight on S+P500, DAX and Nikkei. Fears that China's economy could actually contract this year are emerging in the market...with drastic consequences for that economy. How about outside of China? Could such a contraction restrict buyers in the global property hot-spots of the world? ... The places that Chinese money has found so attractive? Lookout London!

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IS Covid-19 changing us all?

Australians are emptying store shelves and fighting over toilet paper. The Government in France is requisitioning all stockpiles of surgical masks. What would a monetary crisis do to the supply chain at a time when it is already so inhibited?

That's the Fear side. The blase' side is still apparent at the level of the sidewalk. The Press is going 24/7 - but people still have to ignore the warnings to get through the work day. (If you know the warnings and wash your hands all the time, what else are you supposed to do. Self-Quarantine when you can by sitting home at night and ordering home delivered food? Doesn't everyone already do that?)

Is this the end of the business handshake? To be replaced by the slightly more gracious and deferential Eastern bow?

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More Later...

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GMW

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