After Monday, relief
Fiona Cincotta March 10, 2020 5:45 AM
There is a sense of relief in the markets this morning after yesterday’s assault on stocks and commodities stopped, and in some cases, reversed.
There is a sense of relief in the markets this morning after yesterday’s assault on stocks and commodities stopped, and in some cases, reversed. In a first major reaction to the virus by the US President, Donald Trump said he will discuss tax cuts for industries that have been the worst affected by the spread of the coronavirus.
In London, investors are picking up stocks that were the most heavily sold off yesterday, such as oil firms and mining companies, and Brent crude is trading higher, close to $36/bbl. Airlines and travel firms have climbed to the top of the FTSE as news of new cases in Europe and China begins to ebb.
Xi visit to Wuhan signals turning point
Although the corona spread in Italy has become more dramatic and now the whole of the country is on lockdown, the number of new cases in France and Germany over the last 24 hours is actually very small. Also, in a symbolic gesture China’s president Xi Jinping visited Wuhan, the city at the epicenter of the virus outbreak, to signal that the country now has the spread of the disease under control.
Pound lower ahead of budget
The US spending package promised by President Trump is lifting the dollar against other majors, notably the pound and the euro. For sterling the main focus is now shifting to Wednesday when Britain’s new Chancellor Rishi Sunak will present his first budget and outline Britain’s financial response to the virus.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.