On the trading front, it was a very predictable day as flat out bearish and oversold markets came up for air and booked some profits.
Global Containment Efforts
As we enter the new phase of the virus threat, traders are trying to figure out what level of risk alert the market should be on. With coronavirus spread more widely outside China, effective containment and peak virus has given way to how reliable those containment strategies outside of China are. While it’s early days, investors are still concerned that the efforts are more penetrable owing to looser enforcement and greater reliance on voluntary cooperation. At the moment, the market risk tolerance is shifting between effective containment where China declares peak virus versus the fear of a more substantial spread globally but still considerably below global pandemic fears.
And while risk sentiment is trying to make a valiant comeback attempt on “Turnaround…