More travel alerts, the latest coming from Taiwan, which raised it to travel alert level for Korea, has blunted investor sentiment and adding to the deteriorating sentiment HK reported a massive decline in both exports and imports in January Exports fell 22.7% y/y vs. -3.7% consensus, after +3.3% in December. That’s the weakest print since -23.0% y/y in February 2009. If this is a foreshadow of things to come, I think investors across the globe will need to fasten in as things could get incredulously worse befor improving
With the China manufacturing PMI coming out on Feb. 29, and I think it’s overly optimistic to expect the print to come in at 45 from 50, given that industry in China has effectively been on lockdown this month.
After yesterday’s COVID-19 outbreak news spurred a global risk-off move, investors remain incredibly skittish about all things COVID. So, we could see more of the same where US Treasury yields continue to slide as investors move out of…