Facing another rough looking US session, the European losses only intensified as Wednesday progressed, March’s bloodbath showing no signs of abating.
Despite Rishi Sunak’s ‘best’ efforts, the UK markets didn’t take to his stimulus package, instead reversing Tuesday’s gains and then some. Feeling little positive effect from the gains made by Morrisons and Sainsbury’s, the FTSE dropped by 4.9%, leaving it teetering on the edge of 5000.
With investors desperately looking for something resembling a safe haven, the dollar has become a go-to for nervy traders, causing the pound to get absolutely pummelled. Continuing its seemingly uninterruptable decline, cable sank another 1.8%, to $1.188, hitting levels last seen in the 1980s. It fared no better against the euro, tumbling 1.6% to €1.082 – an indication, perhaps, of what investors think of how the government is handling the coronavirus crisis.
The Eurozone indices echoed that FTSE fall. The DAX shed 450 points as it sank back below 8500, with the CAC slipping 200 points to 3800.
Turning to this afternoon and the Dow Jones is facing a 1100 point plunge, wiping out Tuesday’s gains and forcing the index back under 20200.
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