Leave it to traders to find a quick market angle on every human event. The swine flu is no exception: Traders on StockTwits this evening opined that stocks were likely to open lower as a result of the swine flu (the bank solvency tests on Friday, no doubt didn’t help, as well as negative comments by the White House’s Lawrence Summers or a weaker dollar).
“Swine flu to end bear market rally! futures have opened down significantly on the Flu news,” said TradeBeast during MacroTwits, an hour-long program set aside to discuss macroeconomic issues.
That prompted this response from GregorMacdonald: “Interestingly, #Swineflu could function as a dampener of bear market rally, thus breathing new life a week or two from now.”
Separately, another trader suggested selling restaurant stocks:”Eateries overbot, and Swine scare could be catalyst for dump…”
This morning the chatter continued, with one Twitter blogger linking to his post marking the end to the recent spate of optimism in the stock market:
The first blow to risk appetite occurred as traders pondered the effect Swine Flu’s rapid move out of Mexico (Mexican officials has raised the death toll to over 100) into the US and New Zealand might have. The initial market reaction was clinical with equity lowers with pharma stocks moving higher and airlines stocks were sold off.
Market traders are avid consumers of news and they makes no pretense about its many uses