Market comment | Fed intervention failed to calm markets, as core bond yields fell further

Global policy response failed to reassure investors, unnerved by the alarmingly rapid outbreak of Covid-19 beyond China and its impact on global growth and financial stability. Volatility soared and the USD and EMs FX depreciated.

Key points

• Key points:
• Germany’s factory orders rebounded in January, while the U.S. showed improving payroll data.
• Equity markets slide. VIX soared to high levels of 2011 (VIX 48, +8 points).
• The JPY and CHF attracted safe-haven flows, while the USD depreciated. India’s rupee sank amid troubling banking sector.

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