Well, for now at least
Investors are brushing aside fears of the new coronavirus outbreak after China vowed to take measures to prevent and control the situation earlier today.
Chinese stocks have rebounded sharply while equities in general are faring better as we head towards European trading. US futures are up by ~0.5% currently.
The risk recovery also sees bonds and gold a little weaker, and that is also weighing on the yen and franc to begin the session. USD/JPY is back up just above the 110.00 handle now but the trading range remains relatively narrow still.
The dollar is a little firmer across the board but nothing too notable as the pound is still keeping some gains after the UK jobs report yesterday.
Looking ahead, there is little in the European morning calendar to distract from the risk mood so expect markets to stick with the ebb and flow of things in the hours ahead.
As mentioned earlier, I reckon the real test of this new coronavirus outbreak is still yet to come since we will observe heightened travel activity in China and overseas during the Chinese New Year holidays starting later this week.
