Stock markets put in their worst day since 1987 yesterday as participants flocked for the exits. European and US indices found themselves closing over 10% lower with the Dow Jones Industrial (30 top US companies) shedding over 3,000 points, equivalent to 13%.
%. Forex markets avoided much of the mayhem with the usual reactions occurring. The Japanese yen, Swiss franc and euro were all sought after. While riskier currencies were sold. The pound has been having an exceptionally tough time over the past few weeks. A combination of lower expected economic growth mixed with a 50-bps interest rate cut have both taken their toll. In addition, the current climate prevents negotiations taking place between the UK and EU. With already such a short period of time anyway, the significant delays will almost certainly jepordise the prospect of a trade deal. Many will be hoping for some form of announcement that more time will be given and possibly even an extension to the transition period. While much of today’s focus will be on Covid-19, there will however be some economic reports to observe. UK employment, German ZEW sentiment and US retail sales/industrial production will all cross the wires. Additionally, many UK participants will be keeping a close eye on any announcements from the PM in respect to the ongoing COBRA meetings.
8:33am, March 17th 2020
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