Daily Market Color January 24, 2020Coronavirus Outbreak Continues to Weigh on Global Risk Assets The coronavirus continues to spread through China as the death toll rises to 25 people. More cities in China are on lockdown with 40 million people banned from leaving for the Lunar New Year. The virus has caused a global slowdown, especially in transport assets as the benchmark CSI 300 index is down over 3% from last week. At the beginning of March, China will release hard data on transport and retail sales, which will provide more concrete information on the effects of the virus. Back in 2003 during the height of the SARS virus, China’s GDP dipped 2% between the first two quarters with transport sectors taking the biggest hit. Investors continue their risk-off stance as they wait to see if these effects are mirrored during this new outbreak. The US Purchasing Managers’ Index will be released this morning with investors forecasting slight slowdowns from the previous flash. . Across the pond, the UK released stronger-than-expected PMI numbers this morning causing the pound to fall and stocks to rally. This comes on the heels of yesterday’s BOE announcement which publicized the launch of a formal review of their rate-setting strategy. The headline consensus for the US PMI is a lower number than the previous release, but still within the expansion territory (50+ reading). Day ahead. Democrats are wrapping up their comments during President Trump’s impeachment trial, with the goal to rally four Republican senators to support their motion to obtain additional evidence and subpoena more witnesses. Internationally, the annual Davos meeting in Switzerland is coming to a close, with several world leaders sharing a positive outlook for the global economy in their closing remarks. American Express and other companies will report earnings.