Market Comment | The strong U.S. consumer confidence led a market relief rally

Summary

Global equity markets stabilized, and rebounded slightly after yesterday’s dramatic correction. The strong U.S. consumer confidence and regional manufacturing report boosted equity markets and sovereign yields today.

Key points

• Key points:
• Global equity markets stabilized pending upcoming developments in coronavirus.
• U.S. consumer confidence remained very resilient in January.
• Sovereign yields rebounded but remain below pre-trade agreement levels.
• The implied volatility in the S&P500 slid back slightly but still remains well above December levels (VIX 16).
• Oil prices rebounded amid OPEC willingness to extend its current production cuts.

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