The yen leads gains in the major currencies space
- China's Hubei province has reported 14,840 new coronavirus cases
- China's Hubei province extends work suspension until 20 February
The first headline on the sharp rise in the number of cases is what is setting off the negative risk mood to start the day, as the market feels disconcerted by the fact that the worst is not necessarily behind us when it comes to the coronavirus outbreak.
Risk trades took a hit on the headline and that the safety flows have been persisting even as we move towards the European morning session now.
The yen is leading gains in the currencies space with USD/JPY near session lows around 109.80 currently. Meanwhile, the aussie and kiwi are the notable laggards.
Other major currencies are keeping more steady with little change seen against the dollar but the overall risk mood continues to stay softer, so just be mindful of that.
Asian equities are lower and US futures are also down by 0.4% after another record high close yesterday in Wall Street. Notably, Chinese stocks are on course to snap their seven-day rally and that will set up a softer start to the session ahead.
