Market comment | No love lost for ‘risk-on’ even as virus fears lure safe havens

Risk-on mood waned slightly towards the end of the week as a sharp rise in COVID-19 cases raised doubts over the outbreak’s peak. European equities reversed early gains, while U.S. equities opened broadly flat. Moreover, in Asia, China’s CSI 300 recovered from yesterday’s losses.

Key points

• Key points:
• Abrupt changes and accounting errors have raised doubts over Chinese COVID-19 data reliability.
• Weak growth confirmed in 4Q19 for the EZ while Germany stagnated. U.S. manufacturing data was broadly steady.
• Safe-haven bonds remain well demanded this week amid COVID-19 spillover concerns.
• The USD further strengthened, while the EUR depreciated amid political concerns and weak economic data.

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