It is starting to get a bit ugly out there again
The DAX is down by 1.5% now as heavier losses are building across the board in Europe. Meanwhile, US futures are also slipping further with S&P 500 futures now down by 2%.
The meltdown in Treasury yields is also continuing with 10-year yields down by 8.5 bps to 0.966% on the session. That is weighing on the dollar and is keeping the yen bid with USD/JPY now hitting fresh lows since last October at 106.84.
It has been a choppy last two days in the market as investors are still trying to settle on a firm narrative to follow. Should the focus be on central bank stimulus or the virus fallout?
Either way, expect any focus on the former to be short-lived in nature. As long as the virus outbreak continues to threaten a supply-side shock and a major economic fallout, it will be hard for investors to look past that in the bigger picture.
