After Monday, relief
Fiona Cincotta March 10, 2020 5:45 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.
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.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.