It’s far too early to declare anything about the coronavirus epidemic but the market reaction has been instructive – fiscal and central bank policy is overwhelming fundamentals. The was the top performer Thursday while the lagged.
Stocks retreated slightly lower after the Fed announced it was reducing the daily operations of its repo agreements, but will hold the monthly amount of t-bill purchases unchanged at $60 bn per month. and are at the top of the day’s performers. U.S. are due up next.
4,823 additional coronavirus cases were reported in Hubei, suggesting that the 15,000 reported a day earlier was an aberration due to the new methodology in counting infections. Will be crucial to see if markets pullback late on Friday and Sunday night as they did in the last 3 weeks.
Risk trades dipped again Thursday and once again the dip was bought. Looking back at the past month, not once did US stocks finish a day on the lows and there were only two days where genuine risk…