Market comment | Risk aversion leads market trend

Although markets tried to find some ground during the morning -after the yesterday’s huge sell-off in equities-, the risk-off mood resumed in the afternoon, as COVID-19 spread outside of China. Elsewhere, the USD depreciated suddenly following disappointing manufacturing data.

Key points

• Key points:
• German 4Q annualized GDP rose 0.4% YoY, while U.S. manufacturing data disappointed.
• Sovereign bond yields extended declines after yesterday’s sharp fall. The US yield curve showed a negative slope between the 2Y and the 5Y tenors.
• Equities continue on a downward trend, with the VIX index reaching 26.

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