Chart of the Week : Chicago Fed National Activity Index
The broadest indicator of the US economy confirms that a recession is unlikely this year.
EM equities go red on 2019-nCoV, Italian election result lifts sentiment
The market has been caught by surprise as the Chinese coronavirus has worsened beyond initial expectations with 56 million people in lockdown to contain the virus. In Europe, Italian equities are responding positively to the election results over the weekend seeing Salvini's rightwing coalition losing out in the important Emilia-Romagna region.
FX Update: Coronavirus dominates attention across markets
The corona virus outbreak is dominating market attention, and rightfully so, although the forex market remains sluggish in pricing in the kind of risk off we are seeing across asset markets, a move that has so far proven rather orderly, given the unknowns and potential nonlinearities of the situation. We urge caution here and highlight the risk of volatility expansion.