Market News & Analysis
New corona regime takes liquidity out of the markets
Fiona Cincotta March 17, 2020 9:16 PM
The FTSE is trading lower but far from the hysteria of the last few days mainly because volumes of trade have shrunk in most stocks except a few banking shares.
A notable exception to the overall declining trend on the index is the Chilean miner Antofagasta which bounced 13% after it reported a substantial increase in full year profits.
The CAC 40 is trading down 1.42%, however, the number is masking the underlying number of sell orders waiting for execution.
The CAC’s decline has been temporarily slowed down by the French financial regulator introducing a ban on short selling of 92 French stocks which were the worst hit on Monday, with the ban to stay in place until the close of day Tuesday.
Volkswagen has joined European car manufacturers Fiat Chrysler and Peugeot, and Vauxhall maker PSA in closing its European plants for two weeks.
Brent holds close to $30
Surprisingly, even with all the negative travel news and more stringent bans on movement across Europe, Brent crude is still managing to hold close to the $30 mark and it has even bounced back from a dip after hours Monday. However with news of industrial closures in Europe on top of the largely grounded air travel, it would take a brave investor to punt on an upward move in oil price.
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.