FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
47 085.73

Top 5 Things to Know in the Market on Monday

23 March 2020

The Senate's $1 trillion-plus coronavirus bill stalls in the face of Democratic opposition, while President Trump chafes at the extreme impact of shutdowns on the economy. Stocks are set to open lower in frustration at the delay. German Chancellor Angela Merkel is in self-isolation but her government is set to cast aside a decade of austerity with a record deficit in its new budget. Calls for the euro zone to consider joint bonds increase, and Big Oil is scaling back its capital spending but not its dividends.  Here's what you need to know in financial markets on Monday, March 23rd. 

1. House Democrats stall McConnell's $1 trillion package

The Senate’s ‘phase 3’ package of economic support measures for the U.S. economy stalled after running into resistance from House Democrats.  A procedural vote on the package, originally scheduled for Sunday evening, has accordingly been rescheduled to midday eastern time, according to various reports.

The bill has a sticker value of well over $1 trillion, including a reported $50 billion earmarked for the stricken airline industry.

On Sunday, St. Louis Fed President James Bullard told Bloomberg he thought U.S. economic activity could halve in the second quarter as activity shuts down.

President Donald Trump again expressed impatience with the effect of public health measures on the economy, tweeting that “WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF” and promising a review of the administration’s current advice within a couple of weeks.

2. Euro zone to meet amid calls for it to take giant leap with 'Corona bonds'

EU finance ministers are set to hold another teleconference on Monday ahead of a Eurogroup meeting on Tuesday,  amid growing calls for the currency union to issue joint debt instruments to share the burden of supporting the economy through the Covid-19 crisis.

Portugual's central bank Governor Carlos Costa on Monday followed Italian Prime Minister Giuseppe Conte in calling for the bloc to issue jointly-guaranteed debt, a proposal that was repeatedly resisted by the likes of Germany and the Netherlands during the last euro crisis.

Germany itself is set to end a decade of austerity this week with a new emergency budget that envisages a deficit of around 156 billion euros and total support measures for the economy of over 1 trillion ($1.07 trillion)

The Ifo research institute estimated a hit to the German economy of some 730 billion euros from the pandemic.

3. Signs of a slowdown in new Covid-19 cases in Europe; U.S. picture unclear

The rate of growth in new Covid-19 infections across Europe appeared to slow, albeit the overall numbers of both infections and deaths continue to rise alarmingly.  

At the weekend, Europe’s largest economy, Germany, imposed a two-week ban on all non-essential meetings of more than two people, while Chancellor Angela Merkel went into self-isolation after having contact with a doctor who subsequently tested positive for the Covid-19 virus.

Elsewhere, Spain extended its emergency lockdown regime by another two weeks to early April while the U.K. reportedly pondered stricter measures to enforce its hitherto relaxed steps to encourage social distancing.

Analysts at Pantheon Macroeconomics said the rate of new infections also appears at first sight to be slowing in the U.S., but warned that the incompleteness of testing data made it impossible to say for sure. Chief economist Ian Shepherdson noted that New York City data are probably more reliable than national data. "The number of cases per million is now much higher than in Italy, and, at 941 yesterday, it will soon shoot above Hubei's 1,185," he wrote in a note to clients.

4. Stocks set to open lower amid ongoing signs of liquidity squeeze

U.S. stocks are set to open lower on disappointment at Congress’s failure to pass the latest economic support bill, amid ongoing signs of liquidity stresses in various asset classes.

By 6:30 AM ET (1030 GMT), the Dow Jones 30 Futures contract was down 504 points, or 2.7%, while the S&P 500 Futures contract was down 2.7% and the NASDAQ 100 futures contract was down 2.3%.

Overnight, risk assets had trended down in both Europe and Asia, but declines were mostly orderly.

However, signs of dysfunction in markets continue to pop up, with the Financial Times reporting that Goldman Sachs (NYSE:GS) had to intervene to support liquidity in two of its money market funds, while reports also circulated of various Scandinavian funds suspending redemptions.

The reports suggest that central bank efforts over the last two weeks to keep markets functional haven’t been entirely successful.  

5. Big Oil cuts back

Royal Dutch Shell (LON:RDSa) and Total (PA:TOTF) both suspended their stock buyback programs and announced big cuts to capital expenditure to conserve cash.

However, both companies left their dividends intact for the time being.

In the U.S., meanwhile, The Wall Street Journal reported that Occidental Petroleum (NYSE:OXY) is set to appoint two representatives of activist investor Carl Icahn to its board, ending a bitter struggle over the company’s direction as it struggles with a heavy debt load after last year’s acquisition of Anadarko.

Crude oil futures resumed their declines, WTI falling 0.5% to $22.50 a barrel and Brent falling 4.1% to $25.87.



US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021

Gold is anxiously waiting for the US inflation data
Gold is anxiously waiting for the US inflation data

Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels...

14 Sep 2021

Here Is Why Stock Futures Are Trading Lower
Here Is Why Stock Futures Are Trading Lower

Despite a week of doom and gloom in the stock markets, futures in the United States are still trading lower. Since February, the S&P 500 has been on its longest...

13 Sep 2021

Fintech - too big to be?
Fintech - too big to be?

Two of the world’s largest economies are in sync with pressure on their fintech giants. Access to user data and the growth of ecosystems have effectively...

13 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.