The realization that central banks are unlikely to add further stimulus, despite still grim virus situation, seems to have been adding to the pressure on stock markets, which traded very cautiously overnight. Yields rose sharply in Australia, New Zealand, South Korea. Investors have already run far ahead with the recovery story, but restrictions to try & limit the still escalating Covid-19 infections acted as a reminder that there are still considerable downside risks in the near term. Parts of Hong Kong will reportedly go into lockdown soon, there are also warnings in the US that the situation may get worse before it gets better. That counterbalanced some of the positive earnings reports, the prospect of more fiscal stimulus at least. Intel revealed an unexpectedly strong bounce in Intel’s sales. Biggest move of Day is USDZAR (+0.81% as of 09:48 GMT).
Today: Today focuses on preliminary January PMI readings for the US, Eurozone & UK, which are expected to show a decline in sentiment in the services sector.
