Risk sentiment was dented by the increase....>

STOCKS: Risk sentiment was dented by the increase in attention/worry afforded to

the Chinese Coronavirus issue over the last couple of days, seemingly

culminating in a notable market reaction when Chinese equity index futures

re-opened today.

- The Hang Seng underperformed, owing to the sensitivities to Chinese consumer

habits & the potential impact that HK firms may be subjected to over the Lunar

New Year period (although a source did remind us that "mainland Chinese haven't

been particularly welcome in Hong Kong in recent times anyway, and were "already

avoiding Hong Kong in droves.") Elsewhere, it is also worth remembering that

Moody's downgraded Hong Kong's sovereign credit rating after hours on Monday.

- There will likely be some form of worry re: liquidity if these moves hold,

given the upcoming Lunar New Year holiday period.

- Nikkei 225 -0.9%, Hang Seng -2.2%, CSI 300 -1.3%, ASX 200 -0.4%.

- S&P 500 futures -14, DJIA futures -98, NASDAQ 100 futures -45.