So far, there has been a slight shift in cash flows to safe havens, with most traders positioning themselves because of the spread of coronavirus in China.
Overall a pretty bad timing for such a case because it also coincides with the Chinese New Year and many people travel to the country – and beyond – which further exacerbates the risks surrounding the situation.
I expect a cash flow split between risky and safe haven assets, with investors staying alert and stand by with gold and yen purchases.
On the other hand, the empty economic calendar and the intensification of corporate news mean that market participants will try to push the indexes to new peaks in today’s session.
Today, the largest reports feature those of IBM and Halliburton. With stronger-than-expected results, we will see increased interest in risky assets and fresh purchases at indexes.
Trader Aleksandar Kumanov