Daily Market Color January 22, 2020Market Flocks to Safe Haven Assets After Wuhan Contravirus Outbreak China virus concerns send risk assets lower. Concerns around China’s ability to contain the Wuhan contravirus (a deadly virus similar in some respect to SARS) kicked off a bond rally yesterday that saw Treasury yields fall 5 basis points across the curve while the S&P 500 fell 0.30%. This morning, equity futures and rates have halted their decline after reports of a nationwide screening effort in China has helped temporarily ease concerns around a broader outbreak. The 10-year Treasury yield sits at 1.77%. Bank earnings continue to roll in. With the large banks out of the way, this week will see more regional and community banks reporting earnings. The themes from last week remain, most investors expecting earnings to show solid loan growth (consumer loan growth offsetting a slowdown in C&I) while credit quality is also expected to strong. Today will be an extremely busy day, with 19 different banks reporting fourth quarter results. Day ahead. The US National Association of Realtors will publish December existing home sales this morning. Due to lower mortgage rates and rising income in the last few months, investors forecast a 1.9% increase from November’s numbers. The Bank of Canada will also release their rate decision which is estimated to remain unchanged for the 10th straight meeting. This leaves Canada with the highest rate among many advanced countries.