Concerns of a viral outbreak in China has sparked a global risk-off trade, with all major equity indices in the red today (SPX futures -0.33%). Treasury yields are 2-3 bps lower across the curve to start the morning. The spread of a mysterious coronavirus in China has already claimed 6 Chinese lives and infected numerous medical workers (291 confirmed cases). The timing of the outbreak is of even greater concern, as millions of Chinese prepare to travel across the country (and globally) for the Lunar New Year holidays. In trade news, President Trump and President Macron of France have agreed to a truce on digital taxes through the end of 2020, which should alleviate concerns of tit-for-tat tariffs between the two countries in the coming months. The economic calendar for this holiday-shortened week is relatively light, and we’ve entered the pre-FOMC blackout period for Fed speakers (meeting on January 29).
Chief Investment Officer
|1/22/2020||MBA Mortgage Applications||—||—||30.20%||—|
|1/22/2020||Chicago Fed Nat Activity Index||0.13||—||0.56||—|
|1/22/2020||FHFA House Price Index MoM||0.30%||—||0.20%||—|
|1/22/2020||Existing Home Sales MoM||1.50%||—||-1.70%||—|
|1/22/2020||Existing Home Sales||5.43m||—||5.35m||—|
|1/23/2020||Initial Jobless Claims||214k||—||204k||—|
|1/23/2020||Bloomberg Economic Expectations||—||—||56.5||—|
|1/23/2020||Bloomberg Consumer Comfort||—||—||66||—|
|1/23/2020||Revisions – LEI|
|1/23/2020||Kansas City Fed Manf. Activity||-6||—||-8||—|
|1/24/2020||Markit US Services PMI||53||—||52.8||—|
|1/24/2020||Markit US Composite PMI||—||—||52.7||—|
|1/24/2020||Markit US Manufacturing PMI||52.5||—||52.4||—|
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