US Economy and Credit Markets Ended Jan. 24, 2020
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Treasury prices rose significantly over the course of the week on a continuing outbreak of the coronaviras and Eurozone economic news. On Tuesday, the first case of the coronavirus was diagnosed in the U.S. after it broke out in China earlier in the month, with at least 80 deaths attributable to the health issue. On Wednesday and Thursday, China had a strong response to the outbreak, shutting down some public transportation and later locking down the city of origin and two neighboring cities. On Friday, several more cases were reported in the U.S., along with other countries in Europe and Asia, leaving people to worry about a SARS-like outbreak that killed more than 800 people in Asia in 2003. This led investors to seek the perceived safety of Treasuries. The European Central Bank announced on Thursday that the benchmark deposit rate would remain at negative 0.5% and on Friday Manufacturing PMI beat expectations, leaving investors less concerned about the Eurozone. Major economic reports (related consensus forecasts, prior data) for the upcoming week include: Monday: December New Home Sales (730k, 719k); Tuesday: December Prelim. Durable Goods Orders (0.5%, -2.1%), January Conf. Board Consumer Confidence (128.0, 126.5); Wednesday: January 24 MBA Mortgage Applications, December Prelim. Wholesale Inventories MoM (-0.2%, 0.1%), January 25 FOMC Rate Decision Upper Bound (1.75%, 1.75%); Thursday: 4Q GDP Annualized QoQ (2.1%, 2.1%), January 25 Initial Jobless Claims (215k, 211k); Friday: December Personal Income (0.3%, 0.5%), December Personal Spending (0.3%, 0.4%), January MNI Chicago PMI (48.9, 48.9), January Final U. of Michigan Sentiment (99.1, 99.1).
Posted on Monday, January 27, 2020 @ 9:40 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.