Market Sentiment Turns ‘Risk Off’, US GDP in Focus

Risk assets lost traction yesterday, perhaps due to a blend of reasons. One of them could be the escalating tensions between India and Pakistan, while another may be comments by US Trade Rep. Robert Lighthizer that the unresolved issues between China and the US are “too serious”. The slide in China’s January PMIs did not help either. The pound continued sitting on the front seat, keep gaining on hopes that a no-deal Brexit can be averted. As for today, the spotlight is likely to fall on the US GDP data for Q4, which was delayed due to the partial government shutdown.