A bit of News:
The Palladium ETF is up 18 days in a row. Total Returns over last 3 years…Palladium PALL: +223% S&P 500 SPY: +55% Commodity Index DBC: +2 %.( Mizuho)
Risk off Theme so far today but one specific reason as to why is hard to pin down. IMF Cut Global Growth forecast by .1% but said that Downside risks” are still prominent but less skewed to downside”-BBG what appears to be the reason is the Spread of this Conovirus in China and now spreading to Taiwan. A few headlines from Bloomberg (BBG)
• TAIWAN GOVERNMENT CONFIRMS FIRST CASE OF INFECTION WITH NEW CONOVIRUS
• Fourth Person Dies of China Virus as Human Transmission Is Confirmed- The World Health Organization confirmed that the new pathogen is being transmitted among humans, and not just from animals to humans as was originally hoped
• The risk-off tone driven by concerns about China’s coronavirus is dragging down European luxury stocks. Gucci owner Kering, LVMH, Burberry and Richemont are among the biggest Stoxx 600 decliners amid fears the outbreak will disrupt travel and spending. Meanwhile, concerns that virus fears would hamper China’s broader economy are likely weighing down miners.(BBG)
• China’s Lunar New year celebration starts Wednesday so further outbreaks of Virus and Spreading of Disease is front and center due to this very Busy travel week.
Shanghai -1.4%,Kospi -1%,Singapore closed 1% lower and Hong Kong -2.8% Yuan -.5% plenty of weakness in Asia dragging down European stocks and Spoos and providing a bid into treasuries ,Bunds little changed though. Dollar lower yen a bit higher and Gold can’t figure what it wants to do.
U.S. Economic calendar pretty light this week, ECB meeting Thursday and European PMI s Friday morning are the Highlights. Earnings season continues with Netflix, Texas instruments, Kimberly Clark as a few top names