Tuesday 4th February 2020

US equities bounced back today – perhaps because there wasn’t a lot of new news on the Coronavirus, but also because US ISM numbers exceeding expectations. As Phil Dobbie discusses with NAB’s David de Garis, perhaps this suggests that, without the virus, the global economy would be returning to a good place. Even revisions to Markit PMIs for Europe provided some room for home. All the more reason, then, for the RBA to sit tight today. The only real volatility today came from the pound, hit surprisingly hard considering we knew there would be some argy-bargy with Barnier.