The financial markets today awoke to another difficult day, marred by the ongoing coronavirus pandemic and its heavy damage to the global economy.
The word “recession” is on everyone’s mind and the markets continue to reflect this pessimistic sentiment. Stock indices are still on the downside in the United States, Europe, and Asia.
Risk aversion on the markets also remains high. Investor interest is focused on safe haven assets, among which the US dollar is the most popular at the moment. Thus, the USD is growing in value.
In the United States, the government finally passed a bill that will allocate $500 billion to handling the Covid-19 crisis. The virus is spreading quite fast in the United States, where the lack of enough testing kits and limited healthcare facilities have been among the chief pressures at this time. The new funds might help purchase more health supplies and open make-shift clinics for the growing number of patients.
Today we expect the latest jobless claims report from the United States, the first since the coronavirus arrived in North America. The report will serve as a touchstone for how bad the economic situation has become since Covid-19.
The European Central Bank, after initially failing to meet investors’ expectations about rate cuts, today revealed a massive bond-buying plan which will help increase liquidity in the eurozone and support it through the crisis.
