Morning 1-24

China news:
“Strategists have put their strategies on hold” until after the corona virus crisis in Wuhan passes over ( IFR markets)
— Via Reuters: “China stepped up measures to contain a virus which has killed 25 people and infected more than 800, with public transport suspensions in 10 cities, temples shutting, and the rapid construction of a new hospital to treat those infected. “The World Health Organization … declared the new coronavirus an emergency for China but stopped short of declaring the epidemic of international concern. As Long as Virus does not spread here is the U.S. Domestic markets will shrug off news. If By Chance the World health organization declares an international emergency then headlines will impact U.S. markets

Economic Data. European PMIs:
• -French Jan Mfg PMI (flash): 51.0 vs 50.6 cons; Services PMI (flash): 51.7 vs 52.2 cons
• -German Jan Markit Mfg PMI (flash): 45.2 vs 44.5 cons; Services PMI (flash): 54.2 vs 53.0 cons
• -EZJan Markit Mfg PMI (flash): 47.8 vs 46.8 cons; Services PMI (flash): 52.2 vs 52.8 cons
• UK Jan Mfg PMI (Prelim): 49.8 vs 46.8 cons
• -UK Jan Serv PMI (Prelim): 52.9 vs 52.8 cons

Bunds sold off A bit on Data but have recovered most of losses, trading ranges tight overnight .A bit of Event risk over weekend due to Virus so better off to sit on hands. Copper headed for worst week in a year or so as it trades lower again today. Oil continues to struggle with Brent and Cl both down ~.6% gasoline and heating oil also in the red. Gold a bit of a surprise as it trades down a bit.Dont worry though palladium higher again this morning. Some Rumblings that OPEC wants to extend production cuts to year end but this is hallow talk and having little impact on sentiment today. QE lite trade continues bonds up spoos up and Vol down.

European Stocks well bid after PMI data FTSE +1.7%,Dax +1.5%,Mib+1.6% all 19 stoxx 600 sectors higher led by industrial goods and retail stocks .Buy everything

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