Market Movement, Regional Activity Updates, and a Look at EM Manufacturing

Friday was a dark day in the markets that saw the Dow and the S&P wipe out their gains for the year. Utilities have surged as investors have begun seeking safety and regional PMI’s look to have turned a corner, though Chicago is lagging the pack and continues in contraction. Meanwhile, the People’s Bank of China (PBoC) has quite the task on their hands with the reopening of the markets following the extended Lunar New Year holiday and onset of the coronavirus. The central bank injected an unprecedented $174 billion of liquidity to help stabilize the market, which opened over 8% lower after having been closed since January 23rd. And while the China slowdown and coronavirus outbreak has risen fears about muting the budding growth in the EM sphere, India’s Manufacturing PMI print rose significantly in January—will it be enough to limit some of the losses spurred by the pandemic? Earnings reports will continue to roll in this week and we’ll also be waiting to see if any of the U.S.’s recent manufacturing gains materialize in Friday’s January jobs report.