Far East Capital Newsletter
Alicanto and Oklo deliver good drill results
2 Feb 2020

In This Issue

Alicanto and Oklo deliver good drill results

While I said last week that the coronavirus should not be moving the markets, I neglected to mention one important point. Speculators are always there to push the limits. Markets were already on highs, so they were due for a correction. Speculators took advantage of this in both equity and commodity markets, going on a shorting campaign. It worked initially and the media were happy to amplify the effects, but how big a role will coronavirus play in the markets from this point? How bad is it really, now and in the future?

The news that many airlines are suspending flights to and from China as the world seeks to quarantine that country means that commerce with China will slow down, though companies like Fortescue say they haven’t seen any change yet. Chinese tourists will be staying at home so that industries that have been relying on them will suffer. Whether things get any worse remains to be seen. 

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