The market is seeing more calm to start the week as virus fears abate
- Shanghai Composite +0.6%
- Nikkei +0.5%
- Hang Seng +0.9%
- S&P 500 futures +0.6%
- US Treasury 10-year yields up 2 bps to 1.547%
- USD/JPY up 0.1% to 108.81
- Gold down 0.2% to $1,574.10
- Oil up 1.0% to $50.63
I reckon traders and investors are still taking things one day at a time but so far there isn’t any major hiccup in the risk mood to kick start the week.
USD/JPY is keeping at session highs now as we are seeing Asian equities keep firmer, as Chinese stocks are faring better on the day after a surge in early trades.
US futures are also keeping higher alongside Treasury yields and that is lending to better risk sentiment as we look towards the start of European trading.
The general feeling is that we’re seeing coronavirus fears recede a little but it could still prove to be early days as the market will have to try and quantify the full extent of the impact the virus has over the Chinese and global economy.
For now, calmer heads are prevailing but it won’t take much to see fear creep back in. As such, just be mindful of further developments in the situation over the next few days.