Market comment | Equity markets rallied, boosting market risk sentiment

Summary

Market risk appetite improved, although risks remain titled to the downside. The Chinese CSI300 equity index rebounded 2.6%, despite the virus spread continuing to mount, with Hong Kong reporting its first coronavirus death. Safe haven currencies (CHF, JPY) depreciated, while solid factory orders data supported the dollar.

Key points

• Key points:
• Equity markets surged and traded near session high (VIX around 16).
• Sovereign yields bonds soared across the board.
• Oil prices recovered some ground (Brent $55 per barrel) amid increasing signs of additional production cuts.

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