Market comment | Relief rally after dramatic equity fall

Although concerns about the Covid-19 spillover effects are still in place, financial markets recovered some ground after the sharp sell-off of previous days.

Key points

• Key points:
• Covid-19 infected cases moderated in China but spread further outside Asia Region.
• Central banks did not still endorse further monetary easing in the short term, although markets fully priced in further easing.
• Equity slightly rebound from recent lows, but volatility hovered around recent highs.
• Yield recovered some ground, but the U.S. yield curve remained inverted in the 2-10Y tenors.

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