The negative economic impact of coronavirs, indicated for several weeks by the decline of pro-cyclical goods, has finally spread rapidly in the rest of the market. Last week began with an urgent 50 basis point interest rate cut by the Federal Reserve, a move that has only strengthened the panic sentiment in the market. In a few days, global sovereign bond yields collapsed to a record low, gold and stock market volatility increased, and the dollar experienced significant selling pressure as long positions were liquidated.
