Market comment | Risk-on ebbs despite strong U.S. payrolls, amid 2019-nCov

Summary

This week risk-on mood returned to DM on upbeat U.S. data, a trade truce, expectations that the coronavirus will have a temporary impact and supported by signs of central banks’ easing. The upward trend in sovereign yield remained contained by the lack of inflation pressure.

Key points

• Key points:
• Rosy U.S. labor market, while disappointing industrial production data in Germany.
• Sovereign bond yields recovered some ground this week, but caution prevailed.
• Equity markets reached new record highs this week. VIX declined (by 4 points to 15).

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