February 03, 2020

Chinese equities had their worst day in years today, falling over 8%, as the corona virus continues to spread, even after the People’s Bank of China vowed to pump $173 billion into the economy to ease its effects.  Chinese markets were closed last week to celebrate the Lunar New Year, which probably led to the significant drop today.  In contrast, US stocks are up to begin the week, having had an additional week to digest corona virus developments in real time.  The Iowa caucuses kick off the first phase of the 2020 presidential election today, which could stir up volatility depending on their outcome.  Gold and silver are down $7.50 and $0.39 respectively on rising stocks and a stronger US dollar.