Contacts are pointing to a report from official Chinese news agency Xinhua that the virus may reach its peak in one week or about 10 days, citing a renowned Chinese respiratory expert. (IFR News) Positive spin
Spoos bouncing a bit as talk of FOMO and Buy The dip (BTD) half-jokingly half serious fill twitter and Bloomberg airwaves. Some stories are encouraging see above whereas other stories not so much. Germany reported her first case of Disease. , Hong Kong said it will close some border checkpoints and restrict flights and train services from the mainland(BBG). Fluid situation that no one can accurately predict, but for now what was lower yesterday is higher today and what was higher yesterday is lower. Common denominator to everything is what will the Central banks do? The OIS market, Overnight Index swaps pricing in the first rate cut in September whereas on Friday December was the first month for a possible cut. The uglier markets get the more they bet on the Fed to come the rescue.
Fed meeting tomorrow no change in rates expected statement likely a nonevent but press conference should be exciting were questions regarding balance sheet and Corona virus likely to dominate.
Economic calendar today shows durable goods and Consumer confidence and another heavy dose of treasury auctions $20 bn 2-yr FRNs, $26 bn 1-yrs and $32 bn 7-yrs
Chinas NHC: 4515 confirmed cases & 106 deaths
Barclays: Compounding effect of spill over to economic growth from China & region, expect transitory oil demand erosion of ~600-800k bpd in Q120 or 0.2m bpd for the full year; if demand erosion is more acute, expect OPEC+ producers to take further steps to keep mkts tight; Libyan oil prod could fall further if blockade of key infrastructure facilities by LNA-backed forces continue
Apple earnings today at 3:30