Market News & Analysis
After Monday, relief
Fiona Cincotta March 10, 2020 8:45 PM
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.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.