Stocks fall, bonds move higher
European equities are down to session lows, falling into negative territory with the DAX down by 0.5% currently. Meanwhile, US futures have also fallen off with S&P 500 futures down by 0.6% in European morning trade at the moment.
The risk aversion is beginning to deepen once again and we're seeing the likes of the yen and franc stay more bid in the session so far. USD/JPY is down to 108.90 while USD/CHF is at 0.9690 as safety flows are much preferred amid virus fears.
With the UK confirming its first two cases and the likes of Singapore, Japan and Italy taking more drastic measures to prevent the virus from spreading, it is continuing to give out a sense of uncertainty to the market ahead of the weekend.
As is the question last week, would you be comfortable enough to be holding risk without knowing how the situation is going to change over the next two days? That will be the real question in testing Wall Street's dip buying resolve later today.