G-7 Statement released, and no Coordinated Interest Cuts announced, Markets a bit disappointed, but no Collapse in Risk assets. These are some of the comments from Statement “*G-7 READY TO TAKE ACTION, INCLUDING FISCAL TOOLS, WHERE NEEDED, Countries “are closely monitoring the spread of the #coronavirus” “reaffirm our commitment to use all appropriate policy tools” and “stand ready to cooperate further on timely and effective measures.” More talk OF Fiscal Policy being the Cure and Not monetary policy as all central banks are close to Zero Lower bound https://t.co/nIik7oz585
Some Central banks made their own decisions on policy yesterday as Australia Cut rates from .75 to .50 and Malaysia cut from 2.75% to 2.5%
Visa joining a handful of other U.S. Companies and lowering it guidance for this quarter as spending slows-BBG. Tesla + 7 pre cash open, Kohls +5% on Good earnings
OPEC meeting this week and Oil markets pricing in Aggressive production cut from the group, markets likely to be Disappointed
Zhejiang province has downgraded its Emergency Response Mechanism from level I (highest and most restrictive) to level II on Mar 2. To date, 20 provinces have de-escalated their Emergency Response Mechanism, accounting for 63% of the national GDP (vs. 57% last Friday).
Not too much Disappointment in market due to No cuts possibly cuts will come when the individual Central bank meet. Fed on the 17th, bank of Canada tomorrow, ECB on the 12th. As the G-7 statement mentioned Fiscal policy likely to have more of an Impact on Economic slowdown, more help to fight slowdown then a few rate cuts. Spoos another big range 60 handles, treasuries finally trading lower we haven’t seen yields close higher much over last 2 weeks, so something of a big deal with yields moving higher. Dollar small bid, Gold is steady and Copper down .3%. negative headlines appear to have less negative impact on the Trade, this is an important feature and could indicate that markets are looking beyond the Virus impact ton economy, A big If. The death total increased by 11 in Iran overnight Stands at 6 in the U.S all In Washington State I believe.
No economic releases today, payrolls loom on Friday A handful of Fed Speak today shows Mester at 1:50 and Evans after markets close.