Market Comment | Equities find support from earnings and bonds as virus concerns increase

Summary

Equity indices slightly extended the rebound at the opening of the session, underpinned by positive company earnings but relapsed ahead of today's FOMC meeting. Meanwhile, investors’ concerns about the impact on the economy of the virus maintained bond markets well demanded.

Key points

• Key points:
• China’s economists estimate of 1Q20 GDP growth at 5% YoY or lower due to the virus
• Bond yields slid back again
• European economic data suggest positive trend in consumption
• Equity markets supported by positive earnings, implied volatility find some resistance to decline

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